<![CDATA[Liquidity is a critical factor in ensuring the operational stability of Islamic banking institutions. This study aims to examine the effects of the Debt to Equity Ratio (DER), Capital Adequacy Ratio (CAR), and Return on Assets (ROA) on bank liquidity, measured by the Financing to Deposit Ratio (FDR). In addition, this research investigates the moderating role of firm size in Islamic Commercial Banks in Indonesia during the 2020–2024 period. This study adopts a quantitative approach using secondary data derived from the published annual financial statements of Islamic Commercial Banks. The data were analyzed using moderated regression analysis to assess both direct and interaction effects among variables. The findings reveal that DER has a negative and significant effect on liquidity, indicating that higher leverage tends to reduce the bank’s ability to maintain adequate liquidity levels. Conversely, CAR shows a positive and significant effect on liquidity, highlighting the importance of sufficient capital in supporting liquidity stability. Meanwhile, ROA does not have a significant influence on liquidity. Furthermore, the moderation analysis indicates that firm size strengthens the relationship between CAR and liquidity, suggesting that larger banks are better able to utilize their capital to maintain liquidity. However, firm size does not moderate the relationship between DER and ROA on liquidity. These results underline the vital role of capital adequacy in sustaining the liquidity performance of Islamic banks.]]>
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