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Research title and researcher
Research title : Analisis CAR, Pertumbuhan Kredit, BOPO, dan LDR Terhadap Profitabilitas Empat Bank Pemerintah || Jurnal Insan Akuntan; ISSN: 2086-6798; Vol. 2 No. 3 Maret 2011; Hal 15-26
Researcher : Lucia Ari Diyani
Keywords : Capital Adequacy Ratio (CAR), Operational Cost to Operating Income, Loan to Deposit Ratio (LDR)
Abstract

As a financial intermediary, Written in second paragraph of article 29 Law of the Republic of Indonesia No. 10 of 1998. Capital is used to assess how much the bank's ability to bear the risk, in order to continue operating. High capital levels will increase the cash reserves that can be used in credit expansion, which will open up greater opportunities for banks to increase profitability. Without sufficient capital support, the bank's operational activities are not expected to run properly, including performing its function as a channel of funds to the community in the form of credit. In the assessment of profitability, a bank isn’t only measured on capital adequacy, but also credit growth, operational cost to operating income, and loan to deposit ratio.

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