DOES RISK MANAGEMENT AFFECT BANK PERFORMANCE?
DOI:
https://doi.org/10.29303/distribusi.v12i2.509Keywords:
Bank Performance, Financial Services Authority, Risk Management, Rural BanksAbstract
The objective of this research is to analyze the impact of risk management on bank performance. Risk management is measured through credit risk, liquidity risk, operational risk, leverage, loan growth, and bank capital. Meanwhile, bank performance is measured through ROA (return on assets) and ROE (return on equity). The sample in this study consists of Rural Banks (BPR) in the province of West Kalimantan. Data were collected from the financial statements for the years 2018 until 2022 available on the Financial Services Authority (OJK) website. According to OJK data, there are 21 BPR’s in West Kalimantan resulting in a total of 105 data points used in this study. The analytical method applied is panel regression, tested using the E-Views application. The results show that credit risk, liquidity risk, and operational risk have a negative effect on ROA, while leverage and bank capital have a positive effect on ROA. In contrast, loan growth does not affect ROA. Additionally, credit risk, leverage, operational risk, and bank capital have a negative impact on ROE, whereas liquidity risk and credit growth do not affect ROE.
Downloads
References
Abrokwah-Larbi, K., & Awuku-Larbi, Y. (2023). The impact of artificial intelligence in marketing on the performance of business organizations: Evidence from SMEs in an emerging economy. Journal of Entrepreneurship in Emerging Economies. https://doi.org/10.1108/JEEE-07-2022-0207
Afiroh, F. (2022). Pengaruh dana pihak ketiga, efisiensi operasional dan penyaluran kredit terhadap profitabilitas Pt Bank Bukopin Tbk 2013-2020. Jurnal Ilmu dan Riset Akuntansi.
Afroj, F. (2022). Financial strength of banking sector in Bangladesh: a Camel framework analysis. Asian Journal of Economics and Banking, 6(3), 353–372. https://doi.org/10.1108/AJEB-12-2021-0135
Agustina, F., Sunarko, B., & Kurniasih, R. (2022). Pengaruh risiko bank terhadap kinerja keuangan bank (studi kasus pada perusahaan perbankan yang terdaftar di BEI periode 2018-2021). Call for Paper and National Conference 2022: “Rural Tourism and Creative Economy to Develop Sustainable Wellness”
Al Zaidanin, J. S., & Al Zaidanin, O. J. (2021). The impact of credit risk management on the financial performance of United Arab Emirates commercial banks. International Journal of Research in Business and Social Science (2147- 4478), 10(3), 303–319. https://doi.org/10.20525/ijrbs.v10i3.1102
Alejandrino, J. C., P. Bolacoy, J. Jr., & Murcia, J. V. B. (2023). Supervised and unsupervised data mining approaches in loan default prediction. International Journal of Electrical and Computer Engineering (IJECE), 13(2), 1837. https://doi.org/10.11591/ijece.v13i2.pp1837-1847
Ali, P., N. O. Njoku, P. N. O., Ugoani, J. N. N., Nwaorgu, O. C., & Ukeje, O. S. (2021). Cash management and bank’s financial performance: evidence from selected deposit money banks in Nigeria. AFRE (Accounting and Financial Review), 3(2), 180–189. https://doi.org/10.26905/afr.v3i2.5450
Al-Slehat, Z. A. F. (2022). The effect of equity financing structure and asset utilization efficiency on financial fragility. International Business Research, 15(12), 132. https://doi.org/10.5539/ibr.v15n12p132
Alwi, H. H., Parmitasari, N. A., & Pamungkas, I. D. (2021). The role of non-performing asset, capital, adequacy and insolvency risk on bank performance: A case study in Indonesia. Journal of Asian Finance, Economics and Business, 8(3), 319–329. https://doi.org/10.13106/jafeb.2021.vol8.no3.0319
Amin, M. A. N., & Khilmi, T. A. (2023). Pengaruh likuiditas, leverage, dan growth terhadap kinerja. JIBEMA: Jurnal Ilmu Bisnis, Ekonomi, Manajemen, Dan Akuntansi, 1(1), 1–17. https://doi.org/10.62421/jibema.v1i1.2
Aminudin, A. (2022). Menghadapi disinformasi konten berita digital di era post truth. Jurnal Lensa Mutiara Komunikasi, 6(2), 283–292. https://doi.org/10.51544/jlmk.v6i2.3137
Ayu, I., & Wibowo, A. (2020). Pengaruh risiko likuiditas, net interest margin, dan good corporate governance terhadap kinerja keuangan bank umum. Modus, 32(1), 53–65.
Bank Indonesia. (2021). Peraturan Bank Indonesia no. 23/13/PBI/2021.
Candy. (2021). Best practice of enterprise risk management: the impact on rurals’ bank performance. Business and Accounting Research (IJEBAR) Peer Reviewed-International Journal, 5(2). https://jurnal.stie-aas.ac.id/index.php/IJEBAR
Candy, Yeria, W., & Putri, S. T. (2024). Peran manajer terhadap kinerja keuangan pada PT. Bank Tabungan Negara Tbk. Economics and Digital Business Review, 5, 297–318.
Dang, V. D. (2019). The effects of loan growth on bank performance: Evidence from Vietnam. Management Science Letters, 9(6), 899–910. https://doi.org/10.5267/j.msl.2019.2.012
Dayana, P., & Untu, V. N. (2019). Analisis risiko pasar, risiko kredit, risiko operasional dan kecukupan modal terhadap kinerja keuangan bank pembangunan daerah se-Indonesia periode 2012-2017. Jurnal EMBA, 7(3), 3798–3807.
Desiko, N. (2020). Pengaruh risiko kredit, risiko pasar dan risiko likuiditas terhadap kinerja keuangan perbankan. Journal Competency of Business , 4(1). https://doi.org/https://doi.org/10.47200/jcob.v4i1.676
Tehresia, S., Mesrawati, Dewi, M., Wijaya, E., & Billyandi, C. (2021). Pengaruh risiko kredit, risiko likuiditas, risiko pasar, dan risiko operasional terhadap profitabilitas pada perusahaan sektor perbankan. Jurnal Ilmiah Indonesia, 6(9). https://doi.org/10.36418/syntax
Erdem, D., & Rojahn, J. (2022). The influence of financial literacy on financial resilience – New evidence from Europe during the COVID-19 crisis. Managerial Finance, 48(9/10), 1453–1471. https://doi.org/10.1108/MF-09-2021-0442
Fakhrunnas, F., Nahda, K., & Chowdhury, M. A. M. (2023). The contribution of islamic and conventional banks to financial stability in Indonesia. ETIKONOMI, 22(1), 213–232. https://doi.org/10.15408/etk.v22i1.26656
Febriekasari, S., & Sudarsi, S. (2023). Pengaruhi rasio kecukupan modal, likuiditas, risiko kredit, dan efisiensi biaya terhadap kinerja keuangan pada perusahaan perbankan yang terdaftar di bursa efek Indonesia 2019-2021. Management Studies and Entrepreneurship Journal, 4(6).
Gadzo, S. G., Kportorgbi, H. K., & Gatsi, J. G. (2019). Credit risk and operational risk on financial performance of universal banks in Ghana: A partial least squared structural equation model (PLS SEM) approach. Cogent Economics & Finance, 7(1), 1589406. https://doi.org/10.1080/23322039.2019.1589406
Habiba, M. (2023). Basel agreements in the efficiency of algerian banks financial evolution and interdisciplinary research. Financial Markets, Institutions and Risks, 7(1), 123–135. https://doi.org/10.21272/fmir.7(1).123-135.2023
Hapsari, R. N. (2022). Pengaruh kewajiban penyediaan modal minimum, risiko kredit, risiko pasar, risiko operasional dan risiko likuiditas terhadap kinerja keuangan bank. PARSIMONIA, 9(1), 28–43.
Hassan, S., Dhali, M., Mehar, S. M., & Zaman, F. (2022). Islamic securitization as a yardstick for investment in islamic capital markets. International Journal of Service Science, Management, Engineering, and Technology, 13(1), 1–15. https://doi.org/10.4018/IJSSMET.315592
Hasti, W. W., Maryani, M., & Makshun, A. (2022). Pengaruh leverage, struktur modal, dan ukuran perusahaan terhadap kinerja keuangan pada perusahaan sektor pertambangan. Reviu Akuntansi, Manajemen, Dan Bisnis, 2(2), 139–150. https://doi.org/10.35912/rambis.v2i2.1544
Heryani, P., Syaiful, Darman, & Yoda., T. (2022). Pengaruh risiko kredit, risiko likuiditas, dan risiko operasional terhadap kinerja keuangan perbankan umum yang terdaftar di bursa efek Indonesia periode (2016-2020). Seminar Nasional Riset Ekonomi dan Bisnis 2022, Fakultas Ekonomi – UNISLA Lamongan. www.idx.co.id
Hossin, Md. S., & Begum, S. (2020). Effects of working capital management on firm’s profitability: a study on the firms listed under dse in Bangladesh. International Journal of Economics and Financial Research, 67, 130–138. https://doi.org/10.32861/ijefr.67.130.138
Jagirani, T. S., Chee, L. C., & Kosim, Z. B. (2023). Determinants of the firm value of listed banks in Pakistan: A panel data approach. Asian Economic and Financial Review, 13(4), 241–250. https://doi.org/10.55493/5002.v13i4.4764
Jahrotunnupus, N., & Manda, G. S. (2021). Analisis pengaruh risiko kredit, risiko pasar dan risiko operasional terhadap profitabilitas pada bank umum BUMN yang terdaftar di BEI periode 2013-2020. Eksis: Jurnal Ilmiah Ekonomi Dan Bisnis, 12(2), 157. https://doi.org/10.33087/eksis.v12i2.265
Komalasari, E., & Manda, G. S. (2022). Pengaruh risiko kredit dan risiko operasional terhadap kinerja perbankan pada bank BUMN yang terdaftar di BEI periode 2012-2020. Jurnal Ilmiah Ekonomi Dan Bisnis, 15(1), 89–95. https://doi.org/https://doi.org/10.51903/e-bisnis.v15i1.657
Korompis, R. R. N., Murni, S., & Untu, V. N. (2020). Pengaruh risiko pasar (NIM), risiko kredit (NPL), dan risiko likuiditas (LDR) terhadap kinerja keuangan perbankan (ROA) pada bank yang terdaftar di LQ 45 periode 2012-2018. Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 8(1), 175–184. https://doi.org/https://doi.org/10.35794/emba.v8i1.27499
Lada, S., Chekima, B., Karim, Mohd. R. A., Fabeil, N. F., Ayub, M. S., Amirul, S. M., Ansar, R., Bouteraa, M., Fook, L. M., & Zaki, H. O. (2023). Determining factors related to artificial intelligence (AI) adoption among Malaysia’s small and medium-sized businesses. Journal of Open Innovation: Technology, Market, and Complexity, 9(4), 100144. https://doi.org/10.1016/j.joitmc.2023.100144
Le, T. D. Q. (2020). The interrelationship among bank profitability, bank stability, and loan growth: Evidence from Vietnam. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1840488
Lee, C.-S., Wong, Y.-O., & Gui, H.-Y. (2022). Differentiating persuasive factors for tourism booking websites: Towards matrix factorization. 2022 22nd International Conference on Computational Science and Its Applications (ICCSA), 1–8. https://doi.org/10.1109/ICCSA57511.2022.00011
Mariana, D., & Manda, G. S. (2021). Pengaruh risiko likuiditas dan risiko kredit terhadap kinerja keuangan. Jurnal Humaniora, 5(1), 102–112. https://doi.org/https://doi.org/10.30601/humaniora.v5i1.1661
Mehar, M. A. (2023). Determinants of internal financing: small and medium enterprises in Pakistan. Qeios, CC-BY, 4(0), 1–19.
Nugroho, L. (2022). The relationship between maqasid sharia and profitability ratio in islamic banking industries performance. Sosyoekonomi, 30(53), 243–259. https://doi.org/10.17233/sosyoekonomi.2022.03.13
Pathak, H. P., Gurung, J. B., & Magar, G. B. T. (2022). Impact of bank-specific variables on financial performance of joint venture banks in Nepal. Janapriya Journal of Interdisciplinary Studies, 11(1), 54–74. https://doi.org/10.3126/jjis.v11i1.51645
Pratama, A. A. P. (2019). Capital and lending growth of banking sector in Indonesia: Study on the BUKU category. Jurnal Keuangan Dan Perbankan, 23(4). https://doi.org/10.26905/jkdp.v23i4.3401
Pratiwi, A., & Muthohar, A. M. (2021). Pengaruh growth opportunity, likuiditas, dan leverage terhadap nilai perusahaan dengan profitabilitas sebagai variabel intervening. Journal of Accounting and Digital Finance, 1(3), 163–180. https://doi.org/10.53088/jadfi.v1i3.175
Pratiwi, W., Sumiati, A., & Muliasari, I. (2023). International journal of multidisciplinary research and literature the effect of independent board of commissioners, firm size and leverage on banking financial performance in Indonesia. International Journal of Multidisciplinary Research and Literature IJOMRAL, 2(1), 1–120. https://doi.org/10.53067/ijomral.v2i1
Purwanti, D. (2021). Determinasi kinerja keuangan perusahaan: analisis likuiditas, leverage dan ukuran perusahaan (literature review manajemen keuangan). Jurnal Ilmu Manajemen Terapan, 2(5), 692–698.
Rauf, M., Alim, W., Ali, A., & Rauf, M. (2021). The effect of liquidity risk management on financial performance of commercial banks in Pakistan.
Rusla, A., Pahlevi, C., D, L. A., Nohong, M., & Alam, S. (2019). Capital, bank size, credit risk and bank performance. International Journal of Innovative Science and Research Technology, 4(5).
Saleh, I., & Afifa, M. M. (2020). The effect of credit risk, liquidity risk and bank capital on bank profitability: Evidence from an emerging market. Cogent Economics & Finance, 8(1), 1814509. https://doi.org/10.1080/23322039.2020.1814509
Saliba, C., Farmanesh, P., & Athari, S. A. (2023). Does country risk impact the banking sectors’ non-performing loans? Evidence from BRICS emerging economies. Financial Innovation, 9(1), 86. https://doi.org/10.1186/s40854-023-00494-2
Samal, A. (2019). Impact of bancassurance on financial performance of private commercial banks in India. International Journal of Engineering and Advanced Technology, 8(6s3), 837–844. https://doi.org/10.35940/ijeat.F1300.0986S319
Setyawan, H., & Suprianto, E. (2022). Market risk disclosure: A study on systemic banks in Indonesia. Ilomata International Journal of Tax and Accounting, 3(3), 290–296. https://doi.org/10.52728/ijtc.v3i3.507
Shittu, I., & Abdulkadir, H. (2023). The moderating effect of cost per loan asset ratio on the relationship between credit risk and financial performance of listed deposit money banks in Nigeria. International Journal of Banking and Finance, 18. https://doi.org/10.32890/ijbf2023.18.1.5
Silitonga, R. N., & Manda, G. S. (2022). Pengaruh risiko kredit dan risiko likuiditas terhadap kinerja keuangan pada bank BUMN periode 2015-2020. Jurnal Maksipreneur: Manajemen, Koperasi, Dan Entrepreneurship, 12(1), 22. https://doi.org/10.30588/jmp.v12i1.948
Viverita, V., Bustaman, Y., & Danarsari, D. N. (2023). Liquidity creation by Islamic and conventional banks during the Covid-19 pandemic. Heliyon, 9(4), e15136. https://doi.org/10.1016/j.heliyon.2023.e15136
Wulandari, B., Veronica, V., & Vinna. (2022). The influence of third party funds, credit risk, loan to deposit ratio and capital structure on profitability in banking companies listed on the indonesia stock. Management Studies and Entrepreneurship Journal, 3(2), 325–335. http://journal.yrpipku.com/index.php/msej
Wulandari, S., & Novitasari, N. (2020). Pengaruh internet banking, risiko kredit dan ukuran perusahaan terhadap kinerja keuangan perbankan yang terdaftar di bursa efek Indonesia periode 2017 - 2019. Jesya (Jurnal Ekonomi & Ekonomi Syariah), 4(1), 166–177. https://doi.org/10.36778/jesya.v4i1.327
Yanti, B. C. D., & Setiyanto, A. I. (2021). Analisis pengaruh manajemen risiko terhadap kinerja keuangan perbankan yang terdaftar di BEI. Journal Of Applied Managerial Accounting, 5(2), 95–104.
Yusuf, A. S., Muchlis, & Nugroho, L. (2022). Analisa perbandingan kinerja penyaluran kredit perbankan pada masa pandemi covid-19 dan sebelum masa pandemi covid-19. Sistem Informasi, Keuangan, Auditing Dan Perpajakan, 7(1), 50–65. http://jurnal.usbypkp.ac.id/index.php/sikap
Zelalem, D. (2020). The impact of financial leverage on the performance of commercial banks: Evidence from selected commercial banks in ethiopia. International Journal of Accounting, Finance and Risk Management, 5(1), 62. https://doi.org/10.11648/j.ijafrm.20200501.16
Zona, N. A. (2020). Intellectual capital, capital diclosure, good corporate governance terhadap kinerja keuangan melalui leverage sebagai variabel moderasi. Journal of Business and Economics (JBE) UPI YPTK, 5(1), 40–45. https://doi.org/10.35134/jbeupiyptk.v5i1.108
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Angelina Julia Renaldi, Candy Candy, Yuwono Yuwono
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Penulis yang naskahnya diterbitkan menyetujui ketentuan sebagai berikut:
- Hak publikasi atas semua materi naskah jurnal yang diterbitkan/dipublikasikan dalam situs Jurnal DISTRIBUSI ini dipegang oleh dewan redaksi dengan sepengetahuan penulis (hak moral tetap milik penulis naskah).
- Ketentuan legal formal untuk akses artikel digital jurnal elektronik ini tunduk pada ketentuan lisensi Creative Commons Attribution-ShareAlike (CC BY-SA), yang berarti Jurnal DISTRIBUSI berhak menyimpan, mengalih media/format-kan, mengelola dalam bentuk pangkalan data (database), merawat, dan mempublikasikan artikel tanpa meminta izin dari Penulis selama tetap mencantumkan nama Penulis sebagai pemilik Hak Cipta.
- Naskah yang diterbitkan/dipublikasikan secara cetak dan elektronik bersifat open access untuk tujuan pendidikan, penelitian, dan perpustakaan. Selain tujuan tersebut, dewan redaksi tidak bertanggung jawab atas pelanggaran terhadap hukum hak cipta.
