Management of Default Risk and Reserve Requirement

Safitri, Julia and Geraldina, Ira and Affandi, Muhamad Arief (2022) Management of Default Risk and Reserve Requirement.

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This study aims to empirically examine the effect of credit risk on bank performance through capital adequacy (CAR) as a mediator. Where capital adequacy (CAR) is a new concept developed from the synthesis of monetary theory, financial intermediation theory, agency theory and bank risk management, as an effort to mediate the research gap between the influence of credit risk on bank performance. This study uses panel data with 35 companies as samples and uses a research period from 2013 to 2020. The analytical tool used in this research is PLS-SEM with WarpPLS 7.0 application. The results of the study explain the two rejected hypotheses, namely the effect of NPL on ROA and the effect of GWM on CAR, but the role of CAR as a mediator of the research gap in this study is the relationship between the effect of NPL on ROA and CAR as a partial mediator.

Item Type: Article
Additional Information (ID): ...pdf
Uncontrolled Keywords: Reserve Requirment, bank risk management, return on asset, financial Intermediation Theory
Subjects: 300 Social Science > 330-339 Economics (Ilmu Ekonomi) > 332.1 Banks (Bank, Perbankan)
600 Technology and Applied Sciences > 650-659 Management and Auxiliary Service (Manajemen dan Ilmu yang Berkaitan) > 658.152 Management of Investment, Capitalization (Manajemen Investasi, Manajemen Modal, Kapitalisasi)
Divisions: Koleksi Digital > Artikel
Depositing User: CR Cherrie Rachman
Date Deposited: 02 Aug 2022 04:38
Last Modified: 09 Aug 2022 04:50

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