The Impact of Liquidity, Liabilities, and Equity on Bank Profitability
DOI:
https://doi.org/10.64803/cessmuds.v1.100Keywords:
Liabilities, Banking, Liquidity, Profitability, Literature ReviewAbstract
This study aims to examine the role of liabilities in the financial structure of the banking sector and their implications for bank liquidity, solvency, and profitability through a literature review approach. The research method employed is a library study that analyzes relevant national journal articles published in recent years. Data analysis was conducted using content analysis by comparing and synthesizing the findings of previous studies. The results indicate that liabilities constitute the primary source of bank funding and are closely associated with liquidity and solvency risks. Partially, liabilities do not always have a significant effect on bank profitability; however, simultaneously with equity, liabilities contribute to overall bank financial performance. The conclusion of this study emphasizes that prudent liability management, balanced with assets and equity, is a crucial factor in maintaining banking stability and sustainability.
References
Ajmadayana, C. P., Akmalia, Z., & Hasibuan, A. F. H. (2022). Analysis of liquidity and solvency ratios at Bank Muamalat Indonesia for the 2019–2020 period. Ekobistek Journal, 11(3), 179–185. https://doi.org/10.35134/ekobistek.v11i3.328.
Putra, P. A., Agus, & Saparuddin. (2023). Implementation of liquidity risk management in Islamic banks. Tabarru’: Islamic Banking and Finance Journal, 6(1), 81–91.
Sahetapy, I. F. (2023). The effect of liabilities and equity on net income at PT Bank Rakyat Indonesia (Persero) Tbk for the 2015–2022 period. Trisakti Journal of Accounting, 10(2), 343–356. https://doi.org/10.25105/jat.v10i2.17932.
Rafania, T. A., Anggraeny, N., Putri, K. D., Verdi, A., & Sarah, S. (2023). Analysis of liabilities and equity on operating profit at PT AlloBank Indonesia, Tbk. Journal of Economic and Accounting Research (JENSI), 7(1), 15–24.
Putra, P. A., Agus, & Saparuddin. (2023). Implementation of liquidity risk management in Islamic banks. Tabarru’: Islamic Banking and Finance Journal, 6(1), 81–91.
Sahetapy, I. F. (2023). The effect of liabilities and equity on net income at PT Bank Rakyat Indonesia (Persero) Tbk for the 2015–2022 period. Trisakti Journal of Accounting, 10(2), 343–356. https://doi.org/10.25105/jat.v10i2.17932.
Rafania, T. A., Anggraeny, N., Putri, K. D., Verdi, A., & Sarah, S. (2023). Analysis of liabilities and equity on operating profit at PT AlloBank Indonesia, Tbk. Journal of Economic and Accounting Research (JENSI), 7(1), 15–24.
Ajmadayana, C. P., Akmalia, Z., & Hasibuan, A. F. H. (2022). Analysis of liquidity and solvency ratios at Bank Muamalat Indonesia for the 2019–2020 period. Ekobistek Journal, 11(3), 179–185.
Putra, P. A., Agus, & Saparuddin. (2023). Implementation of liquidity risk management in Islamic banks. Tabarru’: Islamic Banking and Finance Journal, 6(1), 81–91.
Sahetapy, I. F. (2023). The effect of liabilities and equity on net income at PT Bank Rakyat Indonesia (Persero) Tbk for the 2015–2022 period. Trisakti Journal of Accounting, 10(2), 343–356.
Rafania, T. A., Anggraeny, N., Putri, K. D., Verdi, A., & Sarah, S. (2023). Analysis of liabilities and equity on operating profit at PT AlloBank Indonesia, Tbk. Journal of Economic and Accounting Research (JENSI), 7(1), 15–24.
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Copyright (c) 2025 Andini Syahputri, Khairun Niswa, Lita Hepika Ginting, Fadillah Nasution, Nur Aliah (Author)
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