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

Authors

  • Soraya Febriyani Nahak Universitas Nusa Cendana Author
  • Fransina W Ballo Universitas Nusa Cendana Author
  • Ricard T.C Bolang Universitas Nusa Cendana Author

DOI:

https://doi.org/10.32424/icsema.1.1.323

Keywords:

Capital Adequacy Ratio, Operational Efficiency, ROA, Profitability, Human Development Index

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.

Downloads

Published

2025-08-13

Issue

Vol. 1 (2025): The International Conference on Sustainable Economics, Management, and Accounting (ICSEMA 2025) Proceeding

Section

Articles

How to Cite

THE EFFECT OF CAPITAL ADEQUACY AND OPERATIONAL EFFICIENCY ON COMMUNITY WELFARE THROUGH PROFITABILITY (ROA) AS AN INTERVENING VARIABLE AT PT BANK NTT. (2025). The International Conference on Sustainable Economics Management and Accounting Proceeding, 1(1), 3655-3658. https://doi.org/10.32424/icsema.1.1.323