The Influence of Green Banking and Financial Performance, Retrieved from Profitability Bank
Keywords:
Adequacy Ratio, Financial Performance, Green Banking, Operating Expenses, ProfitabilityAbstract
The purpose of this study was to determine the effect of Green Banking which is proxied as Green Banking Daily Operation, Green Banking Policy, and Financial Performance which is proxied as Capital Adequacy Ratio, Non-Performing Loan, Loan to Deposit Ratio, and Operational efficiency ratio on Profitability which is proxied as Return on Asset. The population in this study is banking listed on the Indonesia Stock Exchange in 2016-2019 which consists of 7 banks as research samples. The research sample was selected using a purposive sampling technique. This research data is secondary data. The analysis technique used is multiple linear regression analysis with the help of the SPSS version 26 program. The results of this study are: (1) Green Banking Daily Operation has a positive and significant effect on Return on Asset, (2) Green Banking Policy has a negative and insignificant effect on Return on Asset, (3) Capital Adequacy Ratio has a positive and significant effect on Return on Asset, (4) Non-Performing Loan has a negative and insignificant effect on Return on Asset, (5) Loan to Deposit Ratio has a positive and significant effect on Return on Asset, (6) Operating Expenses Operating Income has a negative and significant effect on Return on Asset. (7) Green Banking and Financial Performance simultaneously have a significant positive effect on Profitability.
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