THE EFFECT OF CAPITAL ADEQUACY AND OPERATIONAL EFFICIENCY ON COMMUNITY WELFARE THROUGH PROFITABILITY (ROA) AS AN INTERVENING VARIABLE AT PT BANK NTT

This study investigates the influence of capital adequacy and operational efficiency on community welfare through profitability (Return on Assets/ROA) as a mediating variable in PT Bank NTT during the period of 2019–2023. Using a quantitative, associative-causal research approach, the study employs secondary quarterly data from the bank’s financial reports and the Human Development Index (HDI) published by the national statistics agency. Variables include Capital Adequacy Ratio (CAR), Operating Expenses to Operating Income Ratio (BOPO), ROA, and HDI. The results indicate that CAR does not have a significant effect on ROA, whereas BOPO has a significant negative impact on ROA. Furthermore, ROA has a significant positive effect on HDI, implying its strategic role in improving community welfare. The findings highlight the importance of operational efficiency and profitability in enhancing the bank's contribution to regional development.

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Publication Details

Journal
The International Conference on Sustainable Economics Management and Accounting Proceeding
Published
2025-08-13
DOI
https://doi.org/10.32424/icsema.1.1.323
Primary Topic
Islamic Finance and Banking Studies
Type
article
Field-Weighted Citation Impact
0.00
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article

THE EFFECT OF CAPITAL ADEQUACY AND OPERATIONAL EFFICIENCY ON COMMUNITY WELFARE THROUGH PROFITABILITY (ROA) AS AN INTERVENING VARIABLE AT PT BANK NTT

Fransina W. Ballo, Soraya Febriyani Nahak, Ricard T.C Bolang
The International Conference on Sustainable Economics Management and Accounting Proceeding
Islamic Finance and Banking Studies
article

THE EFFECT OF CAPITAL ADEQUACY AND OPERATIONAL EFFICIENCY ON COMMUNITY WELFARE THROUGH PROFITABILITY (ROA) AS AN INTERVENING VARIABLE AT PT BANK NTT

Fransina W. Ballo, Soraya Febriyani Nahak, Ricard T.C Bolang
article en

Abstract

This study investigates the influence of capital adequacy and operational efficiency on community welfare through profitability (Return on Assets/ROA) as a mediating variable in PT Bank NTT during the period of 2019–2023. Using a quantitative, associative-causal research approach, the study employs secondary quarterly data from the bank’s financial reports and the Human Development Index (HDI) published by the national statistics agency. Variables include Capital Adequacy Ratio (CAR), Operating Expenses to Operating Income Ratio (BOPO), ROA, and HDI. The results indicate that CAR does not have a significant effect on ROA, whereas BOPO has a significant negative impact on ROA. Furthermore, ROA has a significant positive effect on HDI, implying its strategic role in improving community welfare. The findings highlight the importance of operational efficiency and profitability in enhancing the bank's contribution to regional development.

The International Conference on Sustainable Economics Management and Accounting ProceedingVol. 1
University of Nusa Cendana (ID)
Openalex Percentile: Top 67%
Islamic Finance and Banking Studies
DOIOpen Access PDFOpenAlex
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THE EFFECT OF CAPITAL ADEQUACY AND OPERATIONAL EFFICIENCY ON COMMUNITY WELFARE THROUGH PROFITABILITY (ROA) AS AN INTERVENING VARIABLE AT PT BANK NTT — Fransina W. Ballo, Soraya Febriyani Nahak, et al. · The International Conference on Sustainable Economics Management and Accounting Proceeding (2025) | TGRS Research Map | TGRS