The Influence Of Green Banking And Capital Adequacy Ratio On Profit Growth Of Commercial Banks In Indonesia (A Study on Commercial Banks Listed on the Indonesia Stock Exchange in 2021-2023)

Fauzia, Devi
Yusrialis, Yusrialis

JAWI : Journal of Ahkam Wa Iqtishad
Vol. 3 No. 2 (2025): JAWI - JUNI

This study aims to analyze the effect of Green Banking and the Capital Adequacy Ratio on the profit growth of commercial banks in Indonesia. The sample in this study consists of 35 commercial banks listed on the Indonesia Stock Exchange (IDX) during the 2021-2023 period. The data analysis technique used is multiple linear regression with the assistance of EViews software. The results show that Green Banking, measured using the green rating coin indicator, does not have a negative effect on the profit growth of commercial banks. Meanwhile, the Capital Adequacy Ratio (CAR) also does not affect profit growth. Simultaneously, Green Banking and CAR influence the profit growth of commercial banks in Indonesia. The R-Square value in this study is 0.46, indicating that the Green Banking and CAR variables collectively explain 46% of profit growth, while the remaining 54% is influenced by other variables not examined in this study.