The Impact Of Credit Risk, Liquidity Risk, And Operational Risk On Banking Profitability

Riyadi, Rizal and Khim, Soei and Listari, Sinta and Priadi, Rheine Aega and Muktiadji, Nusa and Ishardyatmo, Handono and Taqyudin, Yudin (2024) The Impact Of Credit Risk, Liquidity Risk, And Operational Risk On Banking Profitability. INTERNATIONAL JOURNAL OF PROGRESSIVE SCIENCES AND TECHNOLOGIES, 45 (2). pp. 139-149. ISSN 2509-0119

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Official URL: https://ijpsat.org/index.php/ijpsat/article/view/6...

Abstract

This study aims to analyze the influence of credit risk, liquidity risk, and operational risk on banking profitability, with KBMI Bank as a case study. The data used are financial data from KBMI Bank during 2019-2022. The analysis method used is panel data regression to evaluate the relationship between independent variables (credit risk, liquidity risk, and operational risk) and the dependent variable (profitability). The results show that liquidity risk and operational risk significantly affect the profitability of KBMI Bank 3 during the research period. Operational Risk has a significant negative impact on profitability, while Liquidity Risk has a significant positive impact. These findings indicate the importance of effective risk management in improving the financial performance of banks. This study contributes to understanding the factors influencing banking profitability, especially in the context of KBMI Bank. The practical implications of this research are the importance of better risk management to improve bank profitability, with a focus on controlling credit and operational risks as well as optimizing liquidity risk utilization. Keywords— Credit risk, liquidity risk, operational risk, profitability, banking, private bank

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Admin Repository
Date Deposited:	27 Jul 2024 17:38
Last Modified:	27 Jul 2024 17:38
URI:	http://repository.ibik.ac.id/id/eprint/1809

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