THE INFLUENCE OF CREDIT RISK, LIQUIDITY RISK AND OPERATIONAL RISK ON FINANCIAL PERFORMANCE

Fitri Nurlaelasari; Mardiah Kenamon; Sri Rahayu

Fitri Nurlaelasari Pascasarjana Universitas Baturaja
Mardiah Kenamon Pascasarjana Universitas Baturaja
Sri Rahayu Pascasarjana Universitas Baturaja

Keywords: Credit Risk, Liquidity Risk, Operational Risk, Financial Performance

Abstract

The purpose was to determine the influence of credit risk, liquidity risk, and operational risk on financial performance of conventional commercial banks listed on the Indonesia Stock Exchange for the period 2017-2021.

The population of this research was 42 conventional commercial banks listed on the Indonesia Stock Exchange in 2017-2021. The sample selection technique used the Purposive Sampling technique, with the determination of samples based on predetermined criteria. Data analysis used panel regression using Eviews tools.

Based on the results of the research, the simultaneous test showed that credit risk (NPL), liquidity risk (LDR), and operational risk (BOPO) had a significant influence on financial performance (ROA). The results of the partial test showed that credit risk (NPL) and operational risk (BOPO) had a negative significant influence on financial performance (ROA), while liquidity risk (LDR) had a positive significant influence on financial performance (ROA) and the results of the determination coefficient test showed that the variables of credit risk, liquidity risk, and operational risk could explain the variation of the financial performance variables by 92.6%, while the remaining 7.4% was explained by other variables not included in the research model such as market risk and others.