The Effect of Credit Risk on Bank Profitability With Efficiency as the Intervening Variable

Eviyanti, Y.N.; Suhartono, Suhartono; Kristijadi, Emanuel

doi:10.18551/rjoas.2018-02.20

Cited by 4 publications

(4 citation statements)

References 4 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The result shows that a significant negative impact exists between CAR and the Profitability of Ethiopian banks by employing the panel data analysis. Kristijadi (2018) identified the effect of credit risk on bank profitability in Indonesia. Credit risk was measured with variables of net charge off (impairment) and NPL rate.…”

Section: Review Of Literaturementioning

confidence: 99%

Credit Risk and Profitability of Banking Sector in Sri Lanka

Bandara

Jameel

Haleem

2021

JEFAS

View full text Add to dashboard Cite

This paper aims to investigate the impact of credit risk on the profitability of the banking sector in Sri Lanka. The profitability is measured with and Return on Assets. At the same time, credit risk is quantified with four indicators: Non-performing loan Ratio (NPLR), Loan to Deposit Ratio (LDR), Net Charge off Ratio (NCOR), and Capital Adequacy Ratio (CAR). Data from thirteen banks over eight years from 2010 to 2017 was analyzed using panel data regression analysis. The finding shows that the Profitability of the Banking Sector in Sri Lanka has been determined by important determinants such as credit risk. The study further finds that non-performing loans have negative and significant return on assets. However, the net charge-off ratio and the loan to deposit ratio are not important variables for expanding the bank's profitability. On the other hand, the CAR positively impacts returns on assets. The study suggested the need to strengthen the management of credit risk in order to preserve Sri Lankan banks' current profitability.

show abstract

Section: Review Of Literaturementioning

confidence: 99%

Credit Risk and Profitability of Banking Sector in Sri Lanka

Bandara

Jameel

Haleem

2021

JEFAS

View full text Add to dashboard Cite

show abstract

“…Operational risk is the chance of experiencing a loss directly or indirectly as a result of unfavorable external events and shortcomings in internal systems, processes, and people. Based on the literature on the correlation between operational risk and banking performance, which is negative (Gadzo et al, 2019), Nur & Emanuel, (2018) oleh (Adiatmayani & Panji, 2021) end (Kusumastuti & Alam, 2019) end (Hasmiana & Pintor, 2022) (Martins et al, 2019). Based on these findings, the following hypothesis can be developed to test the effect of operational risk as reflected by OER and the standard deviation of bank performance on the performance of Islamic and conventional banks.…”

Section: Operational Riskmentioning

confidence: 99%

“…Operational effectiveness and profitability are causally and negatively correlated, with a rise in operating costs invariably resulting in a decline in bank profits. In a study, Nur & Emanuel, (2018) discovered that BOPO has a negative and considerable influence on profitability. The findings concur with those of studies by (Adiatmayani & Panji, 2021) and (Kusumastuti & Alam, 2019).…”

Section: Effect Of Operational Risk On Islamic and Conventional Bank ...mentioning

confidence: 99%

The Effect of Firm-Specific Risk and Macro Economic Factors on The Performance of Islamic and Conventional Bank

Suriyati,

Marwansyah,

Syarif

2023

Indones. J. Econ. Manag.

View full text Add to dashboard Cite

The performance of Islamic banks still fluctuates every year and even their performance ratios are still below the BI standard per bank. The purpose of this research is to evaluate the impact of firm-specific risk (credit risk, liquidity risk and operational risk) and macroeconomic factors (inflation, GDPG and unemployment) on the performance of Islamic commercial banks and conventional banks (ROA) in Indonesia. Comparison of Islamic banks with conventional banks is made because of differences in the respective banking operations/systems. The research uses quantitative research methods with secondary data on Islamic and conventional banking recorded at BI and OJK for the 2017-2021 period. The result in Islamic banks, only the credit risk variable and operational risk II variable have a significant negative effect on the ROA of Islamic banks. The other four variables have no effect on the performance of Islamic banks. In conventional banks, operational risk II variables, inflation and GDP have a significant effect on conventional bank ROA. The other three variables have no effect on the performance of conventional banks.

show abstract

“…For CB, it is also aimed at making profits. The improvement of profitability means that the stronger the solvency of the bank and the sufficient capital advantage to resist CR, the less likely default events will occur [12]. However, for CB with strong profitability, operators may lower the regulatory standards for risks and engage in some high-risk banking activities for more benefits, which will increase the CR faced by CB.…”

Section: The Impact Of Profitability On Crmentioning

confidence: 99%

A Bank Credit Risk Model Integrating Artificial Neural Network

2021

View full text Add to dashboard Cite

In recent years, my country's economic situation has been stable with changes. The overall situation is not optimistic. Coupled with the impact of the epidemic, credit risk (CR) events often occur in the financial market. Optimize the process of CR management and increase CR. Management capabilities and the establishment of a CR management system based on a standardized process are the top priorities for major banking financial institutions. Therefore, this paper studies the bank CR model based on artificial neural network (NN). This paper first briefly explains the impact mechanism of CR from the aspects of profitability and liquidity, then builds the BP NN model, and finally analyzes the BP model. The results show that the misjudgment rate of the BP model is 7.14%, and the judgment accuracy rate is 92.86%. The model is more accurate for CR judgment.

show abstract

The Effect of Credit Risk on Bank Profitability With Efficiency as the Intervening Variable

Cited by 4 publications

References 4 publications

Credit Risk and Profitability of Banking Sector in Sri Lanka

Credit Risk and Profitability of Banking Sector in Sri Lanka

The Effect of Firm-Specific Risk and Macro Economic Factors on The Performance of Islamic and Conventional Bank

A Bank Credit Risk Model Integrating Artificial Neural Network

Contact Info

Product

Resources

About