Ihtiyath : Jurnal Manajemen Keuangan Syariah
Vol 5 No 2 (2021) : Vol.5 No.2 Desember 2021

THE ROLE OF CAPITAL ADEQUACY RATIO (CAR) IN CONTROLLING LIQUIDITY RISK AND CREDIT RISK, SO ABOUT PROFITABILITY IMPROVEMENTS

Probowati, Lina (Unknown)
Nabhan, Faqih (Unknown)



Article Info

Publish Date
31 Dec 2021

Abstract

Abstract This study aims to determine the effect of capital adequacy ratio (CAR) on profitability. This research was conducted on a sample of 10 Islamic Commercial Banks registered with the Financial Services Authority (OJK) in the 2010-2020 period. This study uses path analysis with SPSS 26 application. The results of this study indicate that CAR is not able to directly increase profitability, but CAR has a negative effect on liquidity risk and credit risk. This study also found that credit risk has a negative effect on Profitability, but Liquidity Risk has no effect on Profitability.Keywords: Capital Adequacy Ratio, Liquidity Risk, Profitability

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Journal Info

Abbrev

ihtiyath

Publisher

Subject

Religion Arts Humanities Economics, Econometrics & Finance Social Sciences

Description

Ihtiyath : Jurnal Manajemen Keuangan Syariah was published by the Faculty of Economics and Islamic Business IAIN Langsa which aims to disseminate research results and ideas of academics and practitioners in the field of Islamic finance management. The topics in Ihtiyath Journal include sharia ...