Siahaya, David Michael and Lingga, Margaretha (2020) Analysis of Bank Capital; Credit Risk; and Earning Volatility Towards Bank Liquidity Creation in The Indonesian Banking Industry Over Years 2014-2019. Bachelor thesis, Swiss German University.

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Abstract

Bank is a financial intermediary institution that has the ability to create liquidity. Liquidity creation is an important service that is provided by a bank. Bank creates liquidity with its relatively liquid assets and also relatively liquid liabilities. It is in the form of liquid funds in the bank, which could be used as liquidity funds. The higher the ability of a bank to create liquidity, the more cash a bank can provide to the economy. This research will investigate the relationship between bank capital, credit risk, and earning volatility towards liquidity creation in the Indonesian banking industry over years 2014-2019. This research uses LC method to measure the liquidity creation of banks in Indonesia, and the regression panel data analysis to determine the relationship between bank capital, credit risk and earning volatility towards liquidity creation. The data will be collected from IDX (Indonesian Stock Exchange). The result is estimated by using random effect model. Based on the regression analysis, bank capital and earning volatility has a negative and significant impact towards liquidity creation. On the other hand, credit risk has a negative and not significant impact towards liquidity creation.

Item Type:	Thesis (Bachelor)
Uncontrolled Keywords:	Liquidity Creation; Bank Capital; Credit Risk; Earning Volatility; IDX
Subjects:	H Social Sciences > HF Commerce > HF5001 Business H Social Sciences > HG Finance > HG1501-3550 Banking H Social Sciences > HG Finance > HG178 Liquidity H Social Sciences > HG Finance > HG3691-3769 Credit. Debt. Loans
Divisions:	Faculty of Business Administration and Communication > Department of Business Administration
Depositing User:	Faisal Ifzaldi
Date Deposited:	02 Nov 2020 14:04
Last Modified:	02 Nov 2020 14:04
URI:	http://repository.sgu.ac.id/id/eprint/1857

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