The relationship between profitability and capital buffer in the Indonesian banking sector

This study examines profitability as a mediating variable to explore variables that affect the capital buffer in commercial banks. The research population is conventional banks operating Indonesia, with an observation period of 2017–2020. A purposive sampling method was used, during which 90 observations were found. Data analysis used multiple regression and Sobel test for role profitability. results show acts non-performing loans ratio deposits buffer. Therefore, it suggested must maintain their ability generate order avoid liquidity risk. Another finding also important bank managers have significant effect on reducing profitability, while total assets positive impact. Loan-to-deposit income diversification are not Profitability, debt-to-total ratio, negative impact Non-performing significant, loan-to-deposit has