Track: Business Management

Abstract

This study is intended to investigate the relationship between bank liquidity, asset quality and capital adequacy in determining financial performance in the banking industry in Indonesia with a minimum core capital of IDR 5 trillion in 2015 to 2019. This paper identifies the extent to which bank liquidity can have an impact on the financial performance in banking industry. And analyzing the extent to which asset quality has an impact on the bank's financial performance. Also how is the role of capital in mediating the relationship between liquidity and asset quality of banking industry with the financial performance of the lowest core capital of IDR 5 trillion during 2015 to 2019. Evidence shows that asset quality has impact on financial performance, liquidity has a significant effect on banking financial performance. Asset quality has significant effect on the capital adequacy, liquidity has significant effect on the capital adequacy, the capital adequacy has significant impact on financial performance, then the indirect analysis results show that asset quality has significant effect on financial performance through the capital adequacy and liquidity has no significant effect on financial performance through the capital adequacy.This study is intended to investigate the relationship between bank liquidity, asset quality and capital adequacy in determining financial performance in the banking industry in Indonesia with a minimum core capital of IDR 5 trillion in 2015 to 2019. This paper identifies the extent to which bank liquidity can have an impact on the financial performance in banking industry. And analyzing the extent to which asset quality has an impact on the bank's financial performance. Also how is the role of capital in mediating the relationship between liquidity and asset quality of banking industry with the financial performance of the lowest core capital of IDR 5 trillion during 2015 to 2019. Evidence shows that asset quality has impact on financial performance, liquidity has a significant effect on banking financial performance. Asset quality has significant effect on the capital adequacy, liquidity has significant effect on the capital adequacy, the capital adequacy has significant impact on financial performance, then the indirect analysis results show that asset quality has significant effect on financial performance through the capital adequacy and liquidity has no significant effect on financial performance through the capital adequacy.