Paper Title
A Study Of Capital Adequacy Ratio And Its Determinants In Indonesian Banks: A Panel Data Analysis

The purpose of this study is to determine the determinants of capital adequacy ratio of Bank BUKU 3 and Bank BUKU 4 in Indonesia. Determinants and its effect toward capital adequacy ratio of Indonesian banks are covered by the study. Data are gathered from monthly financial statement of Indonesian banks during 2005—2014. Regression analysis is used in this study toanalyzethe relationships between independent variables; bank size (asset), deposits, credits, nonperforming loan, liquidity coverage ratio (LCR), profitability (ROA and ROE), and net interest margin (NIM) and a dependent variable which is capital adequacy ratio (CAR). The results of this study are assets, nonperforming loan, and ROA have positive effect toward the capital adequacy ratio, while ROE, NIM, credit, and deposit have negative effect toward the dependent variable. On the other hand, liquidity coverage ratio not has any significant effect toward the capital adequacy ratio. Keywords - Banking, Finance, Capital Adequacy Ratio, Financial Ratio, Indonesia.