Analysis of Capital Buffer in Indonesian Banking
Butar-Butar, Novi Andrani
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Capital buffer place a role as to anticipate the increasing of future lost. Basel Committee on Banking Supervision implements a Basel accord which required all banks to have capital adequacy ratio at 13% in order to strengthen the capital position. Moreover capital buffer also act to reduce the likelihood of banks having trouble during economic crisis. The purpose of this research is to know and analyze the effect of Non- Performing Loan (NPL), Bank Size (Size), Return on Asset (ROA), Return on Equity (ROE), Loans to Total Assets (LOTA), Lag of Capital Buffer (BUFFt-1), and dummy variable to capital buffer in Indonesia banking. This research used 30 samples of conventional banking which listed in Indonesia Stock Exchange for period 2012-2015. The result found the negative effect between Size, LOTA an BUFFt-1 to Capital Buffer. While NPL, ROA, ROE has no effect to Capital Buffer. This research also found that government bank and private bank has no different on capital buffer. NPL, Size, ROA, ROE, LOTA, BUFFt-1 and dummy variable have simultaneous effect on capital buffer. Independent variables in this research can explain capital buffer about 28.3575%.