| Abstrakt: |
The main objective of this research is to encourage the increase of banking soundness from green economy crisis by proposing a research model that focuses on banking activity through financial distribution to achieve balance and sustainable economic development. This, in turn, is expected to reduce the global economic crisis pressure. This study analyzes quarterly times series data from the Bank of Indonesia reports from 2009-2023, in order to investigate the determinants of the degree of banking soundness and banking activity. The degree of banking soundness is measured by the Liquidity Ratio, Profitability Ratio, Solvency Ratio, and Activity Ratio. The data is analyzed with the Ed Waves Index and Structural Equation Modeling (SEM) analysis, using the AMOS software. The paper's main finding is that financial stability, as measured by the liquidity ratio, significantly influences intermediary banking, both of savings and loans. However, only bank loans significantly impact for green economy. Furthermore, a green economy crisis can be prevented through bank loan distribution. The paper finds that increasing bank lending can help provide financial liquidity and thus help to prevent an economic crisis. Therefore, financial liquidity can circulate well. Furthermore, the selective and careful process of providing loans will reduce the Non Performing Loans risk in banking and the green economy crisis impact. [ABSTRACT FROM AUTHOR] |
