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Rapid technological advances in recent years have encouraged banks to become digital banks, especially after the COVID-19 outbreak which accelerated the use of digital financial services. This study aims to examine the effect of CAR, BOPO, LDR, and bank size on the profitability of digital banks in Indonesia. Profitability is measured through ROA a...
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p>The crucial role of the banking sector is as an intermediary to give loans or lending to boost a country's economy. Along with advances in technology and digital transformation, lending has become increasingly easier. However, this condition allows for whatever loan growth to affect bank risk or performance. This research investigates the influen...
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... By analyzing the ratio can be obtained a good picture of the condition or financial position of a bank, especially in assessing its profitability. (Sari, 2019) states that there are 3 aspects that affect profitability , namely balance sheet management (aspects of liquidity), financial management (aspects of financial capital) and operating management (aspects of operational efficiency). ...
... The adequacy of capital owned by the bank makes customers feel safe to entrust their funds. CAR is a capital adequacy ratio which is an important factor for banks in the context of business development and accommodating the risk of losses caused in bank operations (Sari, 2019). ...
... The Financing to Deposit Ratio (FDR) is a ratio used to measure the liquidity of a bank in repaying withdrawals made by depositors by relying on the financing provided as a source of liquidity, namely by dividing the amount of financing provided by the bank to Third Party Funds (Sari , 2019) . ...
Keywords: Abstract CAR, FDR, DPK, Profitability, and NPF The research objective was to determine the effect of the capital adequacy ratio, financing to deposit ratio, and third party funds on profitability with non-performing financing as a moderating variable. This type of research is quantitative using secondary data processed through SPSS. The results of this study indicate that the capital adequacy ratio and the financing to deposit ratio have a significant effect on profitability but third party funds have no effect on profitability. Meanwhile, non-performing financing is not able to moderate the relationship between the capital adequacy ratio, financing to deposit ratio, and third party funds to profitability.
