THE ROLE OF LIQUIDITY RISK, INTEREST RATE RISK, AND CREDIT RISK IN INFLUENCING THE FINANCIAL PERFORMANCE OF INDONESIAN BANKS
This study aims to examine the effect of liquidity risk, credit risk, loan-to-deposit ratio (LDR), and bank size on the financial performance of banks in Indonesia listed on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. The sample consists of 41 banks with a total of 205 annual ob...
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| Format: | Article |
| Language: | English |
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Universitas Kristen Indonesian Paulus
2025-07-01
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| Series: | Accounting Profession Journal (APAJI) |
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| Online Access: | https://ojsapaji.org/index.php/apaji/article/view/348 |
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| author | Vina Ayu Nur Septyana Rani Lokonta Sari Sembiring Rani Farah Margaretha Leon |
| author_facet | Vina Ayu Nur Septyana Rani Lokonta Sari Sembiring Rani Farah Margaretha Leon |
| author_sort | Vina Ayu Nur Septyana |
| collection | DOAJ |
| description |
This study aims to examine the effect of liquidity risk, credit risk, loan-to-deposit ratio (LDR), and bank size on the financial performance of banks in Indonesia listed on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. The sample consists of 41 banks with a total of 205 annual observations. The analysis method used is panel data regression with the Random Effect Model approach using Eviews 9.0 software. The results showed that liquidity risk, LDR, and bank size had a significant positive effect on financial performance proxied by Return on Assets (ROA), while credit risk had a significant negative effect on ROA. These findings indicate that liquidity management, efficiency in lending, and the scale of bank assets are important factors in increasing bank profitability.
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| format | Article |
| id | doaj-art-e0b5f838fd5f4df6a32eefb931b2aa06 |
| institution | DOAJ |
| issn | 2715-7695 2686-0058 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Universitas Kristen Indonesian Paulus |
| record_format | Article |
| series | Accounting Profession Journal (APAJI) |
| spelling | doaj-art-e0b5f838fd5f4df6a32eefb931b2aa062025-08-20T02:46:40ZengUniversitas Kristen Indonesian PaulusAccounting Profession Journal (APAJI)2715-76952686-00582025-07-0172THE ROLE OF LIQUIDITY RISK, INTEREST RATE RISK, AND CREDIT RISK IN INFLUENCING THE FINANCIAL PERFORMANCE OF INDONESIAN BANKSVina Ayu Nur Septyana0Rani Lokonta Sari Sembiring Rani1Farah Margaretha Leon2FACULTY OF ECONOMICS & BUSINESS TRISAKTI UNIVERSITYUniversitas TrisaktiFACULTY OF ECONOMICS & BUSINESS TRISAKTI UNIVERSITY This study aims to examine the effect of liquidity risk, credit risk, loan-to-deposit ratio (LDR), and bank size on the financial performance of banks in Indonesia listed on the Indonesia Stock Exchange (IDX) during the 2019-2023 period. The sample consists of 41 banks with a total of 205 annual observations. The analysis method used is panel data regression with the Random Effect Model approach using Eviews 9.0 software. The results showed that liquidity risk, LDR, and bank size had a significant positive effect on financial performance proxied by Return on Assets (ROA), while credit risk had a significant negative effect on ROA. These findings indicate that liquidity management, efficiency in lending, and the scale of bank assets are important factors in increasing bank profitability. https://ojsapaji.org/index.php/apaji/article/view/348Indonesian Banking Sector |
| spellingShingle | Vina Ayu Nur Septyana Rani Lokonta Sari Sembiring Rani Farah Margaretha Leon THE ROLE OF LIQUIDITY RISK, INTEREST RATE RISK, AND CREDIT RISK IN INFLUENCING THE FINANCIAL PERFORMANCE OF INDONESIAN BANKS Accounting Profession Journal (APAJI) Indonesian Banking Sector |
| title | THE ROLE OF LIQUIDITY RISK, INTEREST RATE RISK, AND CREDIT RISK IN INFLUENCING THE FINANCIAL PERFORMANCE OF INDONESIAN BANKS |
| title_full | THE ROLE OF LIQUIDITY RISK, INTEREST RATE RISK, AND CREDIT RISK IN INFLUENCING THE FINANCIAL PERFORMANCE OF INDONESIAN BANKS |
| title_fullStr | THE ROLE OF LIQUIDITY RISK, INTEREST RATE RISK, AND CREDIT RISK IN INFLUENCING THE FINANCIAL PERFORMANCE OF INDONESIAN BANKS |
| title_full_unstemmed | THE ROLE OF LIQUIDITY RISK, INTEREST RATE RISK, AND CREDIT RISK IN INFLUENCING THE FINANCIAL PERFORMANCE OF INDONESIAN BANKS |
| title_short | THE ROLE OF LIQUIDITY RISK, INTEREST RATE RISK, AND CREDIT RISK IN INFLUENCING THE FINANCIAL PERFORMANCE OF INDONESIAN BANKS |
| title_sort | role of liquidity risk interest rate risk and credit risk in influencing the financial performance of indonesian banks |
| topic | Indonesian Banking Sector |
| url | https://ojsapaji.org/index.php/apaji/article/view/348 |
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