Abstract
The purpose of this study is to determine the effect of the level of banking health on the ratio of liquidity coverage in the corporate banking sub-sector included in the category of commercial banks based on business activities (BOOK) 3 during the 2017-2018 period with each period only taking 2 quarterly data. The sample in this study was a banking company listed on the IDX and included in a commercial bank based on business activities (BOOK) 3 consisting of 19 banks selected using the purposive sampling method, with a total of 76 data units. The analytical method used in this study is panel data regression analysis. The results of partial hypothesis testing indicate that the ratio of liquidity coverage is influenced by the level of health with the Altman Z-Score modification method and the Grover G-Score method.
Highlights
In achieving development and economic growth in Indonesia, it takes the role of banks as institutions that support the economy
This study aims to determine the effect of the level of banking health on the ratio of liquidity coverage in the corporate banking subsector included in the category of commercial banks based on business activities (BOOK) 3 during the 2017-2018 period with each period only taking 2 quarterly data
Australia even took 3 years to be able to meet the provisions in the Liquidity Coverage Ratio (LCR), first introduced on 1 January 2015 by the Australian Prudential Regulation Authority (APRA) with an initial minimum LCR requirement of only 60%, where the following year increased by 10% so that in 2019 it can reach what is required by 100%
Summary
In achieving development and economic growth in Indonesia, it takes the role of banks as institutions that support the economy. Banks have 3 (three) main functions, namely, receiving deposit funds, channeling funds, and performing other financial services (Banking Law No 10, 1998). Based on these definitions and functions, it can be said that the bank is one of the financial institutions that carries out an intermediary function for funds received by customers. If the source of funds is greater than the use of funds, it is called a positive gap. If the source of funds is smaller than the use of funds is called a negative gap. If the source of funds and use of funds have the same amount it is called a zero gap
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