This study examines the influence of internal banking factors on capital buffer determinants, focusing on profitability, efficiency, risk, and liquidity. The population consists of 42 conventional commercial banks listed on the Indonesian Stock Exchange. Using purposive sampling, a sample of 27 banks was selected based on annual data from 2019 to 2024. Panel data regression analysis was conducted using Eviews 13 software. The random effect model was selected as superior to the common effect and fixed effect models. The findings indicate that profitability, efficiency, and risk exert a negative and significant influence on the capital buffer, while liquidity has no significant effect. These result highlight the importance of profitability management, operational efficiency, and credit risk management for sustaining banking capital stability. Future researchers could explore how global pandemic like COVID-19 and the macroeconomic factors has influenced the capital buffer of financial institution to enrich the analytical framework for understanding capital buffer determinants.
Rahmatulloh et al. (Mon,) studied this question.