Main Article Content

Abstract

The study aims to compute causality Granger test on Net Interest Margin (NIM) and liquidity  Bank Listed in Indonesia Stock Exchange for the period 2014-2018. Variable of liquidity uses proxies Legal Reserve Requirement (LRR) and Loan to Deposit Ratio (LDR). The statistics tool is E-Views 8th with Granger Causality test. The Data research is financial statement Bank in IDX. We provide finding in the relationship among NIM, LRR and liquidity ratio Bank. We found result that there is Granger causality NIM and LRR, NIM and Loan to Deposit Ratio (liquidity) and Reserve Requirement and LDR. The study is beneficial for management bank to make policy in net interest margin and liquidity, for future research to develop empirical literature in net interest margin, Legal Reserve Requirement and Loan to Deposit Ratio.

Keywords

Net Interest Margin Legal Reserve Requirement Loan to Deposit Ratio Granger

Article Details

Author Biographies

Pristin Prima Sari, Universitas Sarjanawiyata Tamansiswa

Academic profile: Google scholar, Sinta, Researchgate

Ardian Prima Putra, Universitas Veteran Bangun Nusantara

Academic profile: Google scholar, Sinta, Researchgate

Risal Rinofah, Universitas Sarjanawiyata Tamansiswa

Academic profile: Google scholar, Sinta, Researchgate, Linkedin 

How to Cite
Sari, P. P., Putra, A. P., & Rinofah, R. (2020). Granger Causality Test of Net Interest Margin and Liquidity. Jurnal Analisis Bisnis Ekonomi, 18(2), 111-122. https://doi.org/10.31603/bisnisekonomi.v18i2.3821

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