Application of Basel III on health level in banking sub sector company

Yutaka Erwan; John Henry Wijaya

doi:10.20525/ijrbs.v9i3.688

Authors

Yutaka Erwan Faculty of Business and Management, Widyatama University, Bandung, Indonesia
John Henry Wijaya Faculty of Business and Management, Widyatama University, Bandung, Indonesia

DOI:

https://doi.org/10.20525/ijrbs.v9i3.688

Keywords:

Liquidity coverage ratio, Altman Modifikasi, Grover

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.

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