Risiko Perbankan, Working Capital Turn Over, dan Profitabilitas

Abstract

This study aims to obtain empirical evidence of the effect of credit risk, liquidity risk, operational risk, and working capital turnover on the profitability of banking companies. The study population was 45 banking companies listed on the Indonesia Stock Exchange (BEI) for the 2015-2019 period. With a purposive sampling technique, this study used 17 samples of companies. Through multiple linear regression analysis techniques, the results show credit risk and operational risk partially have a negative and significant effect on the profitability of banking companies. It means the lower the credit risk and operational risk faced, the greater the profitability can be generated. This study also shows liquidity risk and working capital turnover partially have a positive and insignificant effect on the profitability of banking companies. This means that the higher the risk of liquidity and working capital turnover faced, will not be able to increase the profitability of banking companies.
 Keywords: Credit Risk; Liquidity Risk; Operational Risk; Working Capital Turn Over.

The Effect of Credit Risk, Liquidity Risk and Operational Risk to Profitability in Conventional Banks Listed on Indonesia Stock Exchange Period 2019-2021

“…How is the financial position, financial information and performance of the company in the previous period, then used as a basis for predicting future financial performance. Talking about the bank's financial performance, you can use the profitability ratio as a benchmark (Cahyani & Sujana, 2021., Pratama et al, 2019. Profitability is the most important measure used to assess the good or bad performance of a bank (Dewi & Wartana, 2021).…”