Journal Evidence Of Law
Vol. 3 No. 3 (2024): Journal Evidence Of Law (Desember)

The Sustainability Business of Indonesian Commercial Banks as Measured by Regulatory Compliance

Puspitasari, Elen (Unknown)
Sudiyatno, Bambang (Unknown)
Masdjojo, Gregorius N (Unknown)
Andraini, Fitika (Unknown)
Nurhayat , Ida (Unknown)
Darodjat , Tubagus Achmad (Unknown)



Article Info

Publish Date
07 Dec 2024

Abstract

This research aimed to examine the relationship between the sustainability of bank business measured by bank performance and compliance with banking regulations. Bank compliance related to capital requirements, liquidity, and asset quality. This research uses quantitative methods to analyze the effect of compliance with banking regulations on bank performance. The research sample is a conventional private bank operating on the Indonesian Stock Exchange. The research period 2017 – 2021(before and during COVID-19) with 25 banks that met the requirements was taken as the research sample. Data analysis uses Panel Estimation Corrected Standard Errors. The outcome demonstrates that strengthening bank performance is positively impacted by capital requirements compliance, especially return on assets, but has no effect on return on equity. Compliance with liquidity and asset quality does not affect bank performance. Another finding is that inflation functions as a control variable for bank performance, while bank size does not. Ultimately, these findings show that a bank must comply with capital adequacy requirements because it has been proven to improve its sustainability business.

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Journal Info

Abbrev

JEL

Publisher

Subject

Humanities Law, Crime, Criminology & Criminal Justice

Description

Journal Evidence Of Law merupakan jurnal yang diterbitkan oleh CV. Era Digital Nusantara, terbit secara berkala 3 kali dalam 1 tahun sejak tahun 2022 pada bulan Januari, Mei dan Septemeber dengan ISSN Print: 2830-3350 , ISSN Online:2828-5301 berbahasa Indonesia dan berbahasa Inggris. Journal ...