Banking Risk In Measuring Financial Performance
DOI:
https://doi.org/10.32528/issh.v2i3.420Keywords:
Market risk, credit risk, liquidity risk, financial performanceAbstract
This study determines the impact of market risk, credit risk and liquidity risk on the financial performance of conventional banking Companies listed on the Indonesian Stock Exchange 2017-2021 period. The approach used is a quantitative approach. The data analysis technique used is panel data regression and with the help of Eviews 12. Panel data regression tests include: Chow test, Hausman test, Lagrange Multiplier test and Adjusted R-squared coefficient of determination. Sampling was performed using a targeted sampling technique. The results show that partially market risk has a positive effect on financial performance, credit risk has a negative effect on financial performance, while liquidity risk has no partial effect on financial performance. An increase in interest income indicates an increase in financial performance because one of the biggest incomes from banks is interest on loans, whereas if the level of credit risk is low, it indicates a decrease in non-performing loans.
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