INDONESIAN BANKS RISK-TAKING: THE EFFECT OF LIQUIDITY RISK, CAPITAL BUFFER AND BOPO: Z-SCORE MEASURE APPROACH

YUWONOPUTRO, Dhanesworo Arsojotegto and SYAICHU, Muhamad (2019) INDONESIAN BANKS RISK-TAKING: THE EFFECT OF LIQUIDITY RISK, CAPITAL BUFFER AND BOPO: Z-SCORE MEASURE APPROACH. Undergraduate thesis, Fakultas Ekonomika dan Bisnis.

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Abstract

This study was aimed to examine the effect of liquidity risk, capital buffer and BOPO on banks risk-taking in Indonesia. This study used loan to deposit ratio, non-performing loan, liquidity gap, capital buffer and BOPO as independent variable and banks risk-taking proxied by Z-Score as dependent variable. This study used secondary data retrieved from banking companies’ annual reports listed on Indonesia Stock Exchange Index (IDX) in 2013-2017. Sample used in this study were 110 samples consist of 22 Indonesian banks taken using purposive sampling method. This study used multiple linear regression as analysis method. The results of this study indicate that non-performing loan and BOPO have a positive and significant effect on banks risk-taking. Capital buffer has a negative and significant effect on bank risk-taking, while loan to deposit ratio has a positive and insignificant effect on banks risk-taking and liquidity gap has a negative and insignificant effect on banks risk-taking.

Item Type:Thesis (Undergraduate)
Additional Information:Bank Risk-Taking, Liquidity Risk, Loan to Deposit Ratio, Non-Performing Loan, Liquidity Gap, Capital Buffer, BOPO, Z-Score
Uncontrolled Keywords:Bank Risk-Taking, Liquidity Risk, Loan to Deposit Ratio, Non-Performing Loan, Liquidity Gap, Capital Buffer, BOPO, Z-Score
Subjects:H Social Sciences > H Social Sciences (General)
Divisions:Faculty of Economics and Business > Department of Management
ID Code:76408
Deposited By:Mr. Perpustakaan Fakultas Ekonomi
Deposited On:19 Sep 2019 13:09
Last Modified:19 Sep 2019 13:09

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