SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS
SIJDEB, Vol. 9, No. 1, March 2025

Examining Effect of Core Capital Tier 1 on Financial Stability in Indonesia

Igamo, Alghifari Mahdi (Unknown)
Apriani, Deassy (Unknown)
Gustriani (Unknown)
Aini, Halia Butra (Unknown)



Article Info

Publish Date
24 Jul 2025

Abstract

This research aims to examine the impact of core capital tier 1 (CCT), loan to deposit ratio (LDR), leverage ratio (LR), interconnection ratio (INR) and on stability financial that measured from credit growth rate (CGR) in Indonesia. Data in this study used secondary data with a time series of Jan 2012–Dec 2022 using the Vector Error Correction Model (VECM) method. The estimation results show that variables that have a significant relationship to financial stability in the short term are LDR and CCT variables. In long term results, there is a positive relationship between LDR and CGR. For a given level of risk, having more capital can in principle imply greater stability. Core Capital Tier 1 assess bank resilience to adverse economic situations and maintain the stability of the financial system. 

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Journal Info

Abbrev

SIJDEB

Publisher

Subject

Economics, Econometrics & Finance

Description

The SIJDEB invites manuscripts in the various topics include, but not limited to functional areas of Financial Management, Marketing Management, Human Resource Management, Entrepreneurship, Strategic Management, Public Economics, Monetary Economics, Industrial Economics, Human Resource Economics, ...