Liquidity Risk, Credit Risk, Market Risk and Bank Capital

2011 ◽  
Author(s):  
Simone Varotto
Keyword(s):  
Credit Risk ◽  
Liquidity Risk ◽  
Market Risk ◽  
Bank Capital

scholarly journals Relationship Between Risk Management Practices and Investment Decisions in Bank of Kigali, Rwanda

2020 ◽  
Vol 1 (1) ◽  
pp. 88-107
Author(s):  
Gedion Alang’o Omwono ◽  
Kayumba Annette
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Best Practice ◽  
Management Practices ◽  
Investment Decisions ◽  
Liquidity Risk ◽  
Market Risk ◽  
Risk Tolerance ◽  
Credit Risk Management ◽  
Risk Monitoring

The purpose of this study was to examine the relationship between risk management practices and investment decisions in Bank of Kigali, Rwanda. This study adopted correlational research design. Descriptive statistics include those of the mean, standard deviation and frequency distribution while inferential statistics involves use of spearman’s coefficient correlations. Linear regression was used where ANOVA was carried on each variable. The study found that there was a correlation between liquidity risk management, default risk management and market risk management with performance of the Banks. The study findings indicated that credit risk management (r=0.096, p<0.01), liquidity risk management (r=0.347, p<0.01), market risk management (r=0.506, p<0.01) and operational risk management (r=0.612, p<0.01) on financial performance. It however found that the Banks do not involve experts and consultants in market risk management thus recommendations were made for the Banks to revise their credit risk management policies, open up and share information with other players on market risk thus involve consultants more in their market risk management and to be more proactive than reactive in risk management. The study concluded that, risk management has a positive influence on the investment decisions and that risk monitoring can be used to make sure that risk management practices are in line with proper best practice risk monitoring policies which also helps bank management to discover exposures at early stages and make corrective actions. The study recommended that, Senior management should develop strategies, policies and practices to manage risk in accordance with the Banks risk tolerance and to ensure that the bank maintains sufficient liquidity risk cover.

scholarly journals Impact of credit risk (NPLs) and capital on liquidity risk of Malaysian banks

2017 ◽  
Author(s):  
Yaman Hajja
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Positive Relationship ◽  
Liquidity Risk ◽  
Dynamic Panel Data ◽  
Bank Capital ◽  
Dynamic Panel ◽  
Macroeconomic Variables ◽  
The Impact ◽  
The Relationship

We investigate the relationship between bank liquidity risk and credit risk and the impact of bank capital on liquidity risk. Using 19 Malaysian commercial banks data over 2002-2011 and applying dynamic panel data GMM estimation after controlling for bank-specific and macroeconomic variables, empirical results document a positive relationship between liquidity and credit risk and a non-linear U-shaped relationship between bank capital and liquidity risk.

scholarly journals Pengaruh risiko usaha terhadap rasio kecukupan modal inti (TIER 1) pada bank-bank kelompok buku 3 dan buku 4

2019 ◽  
Vol 7 (1) ◽  
Author(s):  
Adi Isa Ansori ◽  
Herizon Herizon
Keyword(s):  
Credit Risk ◽  
Liquidity Risk ◽  
Secondary Data ◽  
Operational Risk ◽  
Sampling Technique ◽  
Financial Statements ◽  
Market Risk ◽  
Linear Analysis ◽  
Tier 1 ◽  
Bank Group

This study tried to determine the effect of liquidity risk measured by LDR and IPR, Credit risk measured by APB and NPL, market risk measured by IRR and PDN, operational risk measured by BOPO, and FBIR both simultaneously or partially. On Core CAR (TIER 1) in Bank group of book 3 and book 4. The sample was selected using purposive sampling technique, consisting of five banks such as PT Bank Negara Indonesia, PT Bank Maybank Indonesia, PT Bank Tabungan Negara, PT Pan Indonesia Bank, and PT Bank Permata. The secondary data were taken from published financial statements starting from first quarter 2010 until second quarter 2015. They were collected by documentation method and analyzed using linear analysis. The result shows that, partially, LDR, IPR, NPL, PDN, BOPO and FBIR have significant effect on Core CAR (TIER 1). Simultaneously, LDR, IPR, APB, NPL, IRR, PDN, BOPO, and FBIR, as represented by liquidity risk, credit risk, market risk, and operational risk partially have significant effect on Core CAR (TIER 1) in Bank group of book 3 and book 4.

Corporate governance in relationship with bank risk management

2021 ◽  
pp. 2150034
Author(s):  
Ika Permatasari
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Credit Risk ◽  
Liquidity Risk ◽  
Market Risk ◽  
Data Sources ◽  
Annual Reports ◽  
Bank Risk ◽  
Financial Reports ◽  
The Relationship

The purpose of this research is to examine the relationship between corporate governance and risk management of Indonesian banks. Bank risk managements are measured by market risk, credit risk, and liquidity risk. The samples used in this study were all banks registered in Indonesia during the 2010–2016 period. The data sources were obtained from the annual reports and bank financial reports. The results show that corporate governance implementation in Indonesia was able to affect credit risk and liquidity risk. There were differences in credit risk and liquidity risk in banks with different governance ratings, but not at market risk.

scholarly journals ANALISIS KESEHATAN BANK DENGAN METODE RISK PROFILE, GOOD CORPORATE GOVERNANCE, EARNING DAN CAPITAL PADA BANK MILIK NEGARA TAHUN 2013-2017

2019 ◽  
Vol 2 (2) ◽  
pp. 356
Author(s):  
Skalis Winda Munte ◽  
Selmi Dedi ◽  
Ted Matheus Suruan
Keyword(s):  
Corporate Governance ◽  
Credit Risk ◽  
Comparative Research ◽  
Liquidity Risk ◽  
Market Risk ◽  
Risk Profile ◽  
Self Assessment ◽  
Good Corporate Governance ◽  
Public Company ◽  
Composite Rating

This research was aimed to analysis risk base bank rating using RGEC (Risk Profile, Good Corporate Governance, Earning, and Capital ) method in Bank of Public Company 2013-2017. This research was a comparative research. The analyzer was used in this research is RGEC method. Risk Profile was assessed by, credit risk, market risk, and liquidity  risk. Good Corporate Governance was assessed by self assessment of bank report. Earning was assessed by, i.e ROA, ROE, NIM, and BOPO. And for capital was assessed by CAR. The results of the study that PT. Bank Rakyat Indonesia (Persero) Tbk obtains the highest average weighted Composite Rating, which is 94.67%., PT. Bank Negara Indonesia (Persero) Tbk came in second place at 87.11%. and PT. Bank Tabungan Negara (Persero) Tbk obtains the lowest weighted Composite Rating weight of 85.78%. However, overall the three State-Owned Banks are still rated very healthy. However, it is hoped that further researchers will be able to take on more banks to provide a broader picture.

SISTEM SYARIAH, RISIKO DAN PROFITABILITAS BANK UMUM SWASTA NASIONAL DEVISA DI INDONESIA

2017 ◽  
Vol 2 (1) ◽  
pp. 33-44
Author(s):  
Achmad Mujaahid Al-Chaq
Keyword(s):  
Credit Risk ◽  
Liquidity Risk ◽  
Market Risk ◽  
Regression Method ◽  
Capital Adequacy ◽  
Panel Regression ◽  
Rate Risk ◽  
Operation Risk

This research have a purpose to knowing first relationship between credit risk, liquidity risk, operation risk, market risk and capital adequacy to profitability, second to analyst that a syariah priciple able to reduce impact of risk to profitability. This research taken in Bank Umum Swasta Nasional Devisa Indonesia, with using panel regression method in Eviews 9 software. The result on this research is credit risk, operation risk, liquidity risk and capital adequacy have a negatif influence to profitability, and market risk with two variables, first inflation have a negatif influence and second BI rate have a positifinfluance to profitability. Second, syariah system has to reduce influence risk to profitability, they are eliminate credit risk and BI rate risk, and decrease risk impact to profitabilit in Bank Umum Swasta Nasional Devisa Indonesia. Keywords: credit risk, liquidity risk, operation risk, market risk and capital adequacy, profitability

scholarly journals Analisis Risk Profile dan Pengaruhnya Terhadap Tingkat Pengembalian Aset pada Perusahaan Perbankan BUMN yang Terdaftar Di Bursa Efek Indonesia Periode 2015 – 2019

2021 ◽  
Vol 6 (1) ◽  
pp. 281
Author(s):  
Muhammad Ridho Almuhdhor
Keyword(s):  
Credit Risk ◽  
Linear Regression Analysis ◽  
Liquidity Risk ◽  
Operational Risk ◽  
Market Risk ◽  
Risk Profile ◽  
Statistical Testing ◽  
Significant Positive Effect ◽  
Negative Effect ◽  
Positive Effect

This study aims to analyze how the risk profile level of state-owned banking companies in the period 2015-2019 and test how it affects the rate of return of assets simultaneously and partially. This study uses census techniques that make all state-owned banking companies in the period 2015-2019 as a sample of research. By using multiple linear regression analysis tools and overall statistical testing (F test) and partial (t test), it can be concluded that based on the risk profile level of state-owned banking companies in the period 2015-2019, where Credit Risk shows state-owned banks on healthy criteria, Market Risk and Operational Risk shows state-owned banks on very healthy criteria while Liquidity Risk shows state-owned banks on fairly healthy criteria. Then based on simultaneous research Credit Risk, Market Risk, Liquidity Risk and Operational Risk have a significant positive effect on the return of assets, while partially Credit Risk has a negative effect insignificant, Market Risk and Liquidity Risk have a significant positive effect while Operational Risk has a significant negative effect on the return rate of assets.

scholarly journals How Big The Role of Credit Risk, Liquidity Risk and Capital Have an Effect On The Profitability of The 10 Largestt Bank in Indonesia

2021 ◽  
Vol 2 (1) ◽  
pp. 179-189
Author(s):  
Irawati Junaeni
Keyword(s):  
Credit Risk ◽  
Fixed Effects ◽  
Liquidity Risk ◽  
Capital Adequacy ◽  
Bank Capital ◽  
Return On Assets ◽  
Panel Data Regression ◽  
Analysis Technique ◽  
Capital Adequacy Ratio ◽  
Data Processing Tool

The purpose of this research is to analyze how the effect of credit risk, liquidity risk, bank capital, on profitability. The ratio used to measure credit risk using the Non Performing Loan (NPL), liquidity risk using the Loan to Funding Ratio ( LFR) and bank capital using the Capital Adequacy Ratio (CAR). The sample in this study were the 10 largest banks in Indonesia based on total assets. The analysis technique used in this research is panel data regression with fixed effects. The data processing tool used in this study is the Eviews 10 program. The partial test results show that the variables of credit risk and bank capital have an effect on profitabilityas measured by Return on Assets (ROA). Credit risk shows a negative and significant effect on profitability. And bank capital has a positive and significant effect on profitability. Meanwhile, liquidity risk has no significant effect on profitability. Simultaneously, the variables of credit risk, liquidity risk and capital have an effect of 90.17% on profitability. The remaining 9.83% was influenced by other factors not examined in this study

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