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Abstract

Risks likely to arise and hinder profitability can be measured using the CAMEL
analysis conducted in this study. CAMEL and profitability are fundamental
aspects that are highlighted to determine the financial performance of bank
sectors. It can be said that if the profitability value of a business is good, it
reflects good financial performance. Increased profitability is the success of
management in managing the risks detected. The specific purpose of this study
is to measure each proxy that represents CAMEL analysis on the profitability
value conveyed by the average return on equity (ROAA) variable in the banking
sector so that bank management can manage risk well and generate high
profits. This research was conducted using quantitative methods and secondary
data in the form of databases, namely company financial report documents and
company annual reports downloaded through the official website of the
Indonesia Stock Exchange and processed using Eviews software. Conventional
banks listed on the Indonesia Stock Exchange for the period 2020-2022, as
many as 41 banks became the sample of this study. The results showed that
CAR, NPL, BS, and LDR had a significant effect on banking profitability, while
NIM had no significant effect on banking profitability

Article Details

How to Cite
Elviani, M., & Alfonsa Dian Sumarna. (2024). The Capital Adequacy, Asset Quality, Management Quality, Earning Quality, and Liquidity Analysis in Indonesia Banking Sectors. Jurnal Akuntansi, 14(1), 59–76. https://doi.org/10.33369/jakuntansi.14.1.60-76