Year: 2025
Type: conference-paper
Abstract: Bank performance is the result of the bank's efficiency and effectiveness in carrying out its role as a financial intermediary institution, one of the indicators of bank performance is the ability to generate profitability which measures the bank's ability to generate profits from operational activities. Profitability can be used to measure the health level of a bank in addition to attracting the interest of investors and the public. The study will compare the relationship between financial performance and profitability in the KBMI 1 and KBMI 4 bank groups so that the purpose of this study is to analyze the difference in banking performance in the group of banks that have small core capital (KBMI 1) and the group of banks that have large core capital (KBMI 4). The variables used are CAR, CIR, LDR, NPL as independent variables and ROA as dependent variables. The study used a quantitative approach with a Linear Regression analysis test using dummy data, statistical tools using R. The result of the interaction between each variable in the group was that CAR increased ROA in KBMI 1 and KBMI 4. CIR only decreases ROA in KBMI 1, KBMI 4 is more resistant to low efficiency problems. LDR has a positive impact on ROA in KBMI 4 but negative and insignificant in KBMI 1. NPL reduces ROA but the impact is lighter in the KBMI 4 group.
Authors: Diah Paramita Amitarwati, Eko Suyono, Arintoko
Institution: Jenderal Soedirman University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4413619405