EMPIRICAL EVIDENCE OF THIRD-PARTY FUND TO TOTAL ASSETS RATIO, LONG TERM DEBT TO TOTAL ASSETS RATIO, TOTAL EQUITY TO TOTAL ASSETS, TOTAL CREDIT TO TOTAL ASSETS AND INFLATION TOWARDS LOAN TO DEPOSIT RATIO IN INDONESIAN COMMERCIAL BANKS
Banks have an important role everywhere and everyone. Countries rely on banks as an outstanding economical force and being a major financial intermediary, this includes helping the public of a country. Business activities that bank provides numerous services to individuals and/or businesses who wish...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/57968 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Banks have an important role everywhere and everyone. Countries rely on banks as an outstanding economical force and being a major financial intermediary, this includes helping the public of a country. Business activities that bank provides numerous services to individuals and/or businesses who wish to need assistance. The activities include depositing cash for securing money, loans money to the public, responsible for financial transactions. The banking system has an important role in the modern economic role. Banks should also be able to be sustainable. A ratio is important in banking to see the position, effectiveness and many more.
The data that needed for this research are Across BUKU III and BUKU IV commercial banks in Indonesia during the quarterly period of 2015Q1 until 2021Q1. Retrieving the quarterly sample data from each bank to be made into one dataset, data acquired from the Indonesian Financial Services Authority/Otoritas Jasa Keuangan (OJK), Statistics Indonesia/Badan Pusat Statistik (BPS), and Bloomberg to complete this research.
After calculating and analyzing throughout the research, the researcher has come across the relationship bank-specific variables towards Loan to Deposit Ratio has positive and negative correlation. The variables that have a positive correlation are Long Term Debt to Total Assets Ratio, Total Credit to Total Assets Ratio, and Inflation. The variables that have a negative correlation are Third-Party Fund to Total Assets Ratio, Total Equity to Total Assets Ratio and Total Credit to Total Assets. With this, it is believed that every independent variable is significant, and every hypothesis would yield alternative hypotheses. |
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