scholarly journals The Effects of Capital Adequacy, Credit Risk, and Liquidity Risk on Banks’ Financial Distress in Indonesia

2021 ◽  
Author(s):  
Margarita Ekadjaja ◽  
Halim Putera Siswanto ◽  
Agustin Ekadjaja ◽  
Rorlen Rorlen
Keyword(s):  
Credit Risk ◽  
Financial Distress ◽  
Liquidity Risk ◽  
Capital Adequacy

scholarly journals The effect of credit risk and capital adequacy on financial distress in rural banks

Accounting ◽  
2020 ◽  
pp. 967-974 ◽  
Author(s):  
Agung Dharmawan Buchdadi ◽  
Xuan Tho Nguyen ◽  
Firman Risal Putra ◽  
Sholatia Dalimunthe
Keyword(s):  
Credit Risk ◽  
Financial Distress ◽  
Capital Adequacy

scholarly journals Analysis of The Effect of Capital, Credit Risk, and Liquidity Risk on Profitability in Banks

2018 ◽  
Vol 10 (2) ◽  
pp. 44 ◽  
Author(s):  
Antyo Pracoyo ◽  
Aulia Imani
Keyword(s):  
Credit Risk ◽  
Liquidity Risk ◽  
Commercial Banking ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Panel Data Regression ◽  
Capital Adequacy Ratio ◽  
Data Regression ◽  
Independent Variable

This research aims to analyze the influence of bank-specific component to profitability of banking industry within the classification of commercial banking category 3 (Bank Umum Kegiatan Usaha 3, classification based on Central Bank of Indonesia) in the period of 2011 until 2015. The number of sample for this research are 8 banks or Bank Devisa. Independent variable used for this research are based on the ratio of banks. There are Capital measured by Capital Adequacy Ratio, Credit Risk measured by Non Performing Loan, and Liquidity Risk measured by Loan to Deposit Ratio. While dependent variable Profitability measured by Return On Assets. This research analyzed using Eviews 7 program for Panel Data Regression. The result of this research shows that Capital and Liquidity Risk has insignificance effect to Profitability. Meanwhile, Credit Risk has significant effect to Profitability

scholarly journals Impact of Financial Risk on Financial Performance of Banks in Pakistan; the Mediating Role of Capital Adequacy Ratio

2020 ◽  
Vol 6 (2) ◽  
Author(s):  
Amir Rafique ◽  
Muhammad Umer Quddoos ◽  
Muhammad Hanif Akhtar
Keyword(s):  
Credit Risk ◽  
Financial Performance ◽  
Financial Risk ◽  
Liquidity Risk ◽  
Operational Risk ◽  
Capital Adequacy ◽  
Mediating Role ◽  
Basel Committee ◽  
Capital Adequacy Ratio

Financial risk covers credit risk, liquidity risk and operational risk, which banks face during their operations and these risks have severe impact on profitability of banks. The Basel Committee for Banking Supervision (BCBS) introduces Capital Adequacy Ratio (CAR) to overcome uncertainties/ losses (Risk) to the banks. In this context, the aim of this study is to identify the Impact of financial risk on financial performance of commercial banks in Pakistan with mediating role of Capital Adequacy Ratio (CAR). The findings of the study show that credit risk and liquidity risk have a negative relationship with financial performance, whereas operational risk has a positive relationship with financial performance and capital adequacy ratio of the banks in Pakistan. This study is useful in devising the rules and regulations by the regulators (Basel Committee and State Bank of Pakistan) for risk measurement and management of banks. 

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 Risk Management and Forecasting Macro-Variables Influences on Bank Risk

2017 ◽  
Vol 12 (6) ◽  
pp. 137
Author(s):  
Hashem Valipour ◽  
Mostafa Sohouli Vahed
Keyword(s):  
Exchange Rate ◽  
Credit Risk ◽  
Liquidity Risk ◽  
Capital Adequacy ◽  
Economic Systems ◽  
Price Shocks ◽  
Money Markets ◽  
High Inflation ◽  
Macro Variables

Nowadays banks, as the most important component ofmoney market, are playing a very important role in country’s economy. By developing money markets, banking and financial institutes’ activities it is extensively developed and with no doubts economic development is not possible without considering the role of banking and money markets. By virtue of special and sensitive role of banks in Iran economic system, any shock, disturbances and/or ineffectiveness in economic systems directly effect on banks’ and financial institutes’ performance as well as phenomenon such as high inflation and/or price shocks and fluctuations in other markets such as currencies shall directly and indirectly effect on banks’ risk and profitability. Hence in this paper the effects of economic macro variables on capital adequacy, liquidity risk and credit risk of banks have been reviewed. The results show that there is a positive and significant relationship between gross domestic product (GDP), petroleum revenue, and exchange rate oncapital adequacy of banks. But the effects of liquidity and inflation on capital adequacy of banks are negative and significant which means it causes decreasing of capital adequacy of banks. Increasing in the variables of petroleum revenue, liquidity and inflation result in increasing of liquidity risk and vice versa the increasing in variables of GDP and exchange rate decreased the liquidity risk. Petroleum revenue, liquidity and inflation increments cause increasing in banks’ credit risk as well as GDP and exchange rate increments result in decreasing in banks’ credit risk.

scholarly journals Risk Management and the Financial Performance of Banks in Nigeria

2020 ◽  
Vol 11 (5) ◽  
pp. 115
Author(s):  
Henry Inegbedion ◽  
Bello Deva Vincent ◽  
Eseosa Obadiaru
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Asset Management ◽  
Commercial Banks ◽  
Generalized Method Of Moments ◽  
Liquidity Risk ◽  
Capital Adequacy ◽  
Risk Capital ◽  
Ex Post

The study examined “risk management and financial performance of banks in Nigeria” with focus on commercial banks. The broad objective of the study was to ascertain the effect of risk asset management on the optimal financial performance of commercial banks in Nigeria. The study is a longitudinal survey, so the ex-post facto research design was applied. Research data were analysed using generalized method of moments (GMM) and vector Error Correction Model, after testing and adjusting the data for stationarity and Cointegration.The research findings were: Banks’ profitability is significantly influenced in the short run by liquidity risk and in the long-run by credit risk, capital adequacy risk, leverage risk and liquidity risk. Furthermore, profitability measured by ROaA was found to be positively related to liquidity risk but negatively related credit risk. Arising from the findings, there is the need for effective risk management, especially credit, capital adequacy, leverage and liquidity risks, to enhance the profitability of banks. By helping to enhance the going concern of banks, risk management will help to reduce retrenchment and unemployment and hence help to forestall the attendant social vices.

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

scholarly journals The Effect Of Credit Risk, Capital Adequacy, Liquidity Risk On Financial Performance And Corporate Value

2019 ◽  
Vol 1 (1) ◽  
pp. 68-76
Author(s):  
Novita Agustin ◽  
I Gede Arimbawa
Keyword(s):  
Credit Risk ◽  
Financial Performance ◽  
Liquidity Risk ◽  
Total Sample ◽  
The State ◽  
Partial Least Square ◽  
Least Square ◽  
Capital Adequacy ◽  
Corporate Value ◽  
Risk Capital

This study aims to analyze the effect of credit risk, capital adequacy, liquidity risk on financial performance and corporate value in conventional government-owned commercial banks.The research data was obtained from the financial statements of 2012-2017 Bank Rakyat Indonesia(BRI), the State Bank of Indonesia (BNI), Bank Mandiri, and the State Savings Bank (BTN) (Persero) Tbk, with a total sample of 96. The data were analyzed using PLS (Partial Least Square) through software SmartPLS 3.0. The results of this study indicate that credit risk(NPL), Capital adequacy (CAR), liquidity risk (LDR) have a significant effect on financial performance (ROE), meanwhile there has no significant effect to corporate value (PER), liquidity risk (LDR) has a significant effect on corporate (PER), financial performance (ROE) has a significant effect on corporate value (PER).

scholarly journals Risiko, Efisiensi dan Kinerja pada Bank Konvensional di Indonesia

2017 ◽  
pp. 111
Author(s):  
Sutrisno Sutrisno
Keyword(s):  
Credit Risk ◽  
Stock Exchange ◽  
Liquidity Risk ◽  
Capital Adequacy ◽  
Negative Effects ◽  
Return On Assets ◽  
Operating Income ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Conventional Banks

The purpose of this study is to examine the effect of risk, efficiency and performances of conventional banks in Indonesia. Risk variables consist of capital risk which are measured by Capital Adequacy Ratio (CAR), liquidity risk which are measured by Loan to Deposit Ratio (LDR), credit risk which are measured by Non Performing Loan (NPL) and management risk which are measured by Net Interest Margin (NIM). Efficiency is measured by Operating Expense to Operating Income (BOPO) while banking performances are measured by Return on Assets (ROA). The population of this study is all of conventional banks registered in Indonesia Stock Exchange(BEI.) Purposive sampling method is used and the number of samples is 16 banks. We use quarterly data during period of 2013-2014. The hypotheses are tested using multiple linear regression.The result shows that capital risk (CAR) has negative effects, Liquidity risk (LDR) has positive and significant effects, credit risk (NPL) has no significant effects and management risk (NIM) has positive and significant effects on banking performance. Meanwhile, efficiency (BOPO) has significant and negative effects on banking performance.  

scholarly journals The Nonlinear Dynamics of Corporate Bond Spreads: Regime-Dependent Effects of their Determinants

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Henning Fischer ◽  
Oscar Stolper
Keyword(s):  
Credit Risk ◽  
Financial Distress ◽  
Liquidity Risk ◽  
Corporate Bond ◽  
Var Model ◽  
Dynamic Impact ◽  
Vector Autoregressive ◽  
High Volatility ◽  
Market Regimes ◽  
Bond Spreads

Abstract This paper studies the behavior of corporate bond spreads during different market regimes between 2004 and 2016. Applying a Markov-switching vector autoregressive (MS-VAR) model, we document that the dynamic impact of spread determinants varies substantially with market conditions. In periods of high volatility, systematic credit risk—rather than interest rate movements—contributes to driving up spreads. Moreover, while market-wide liquidity risk is not priced when volatility is low, it becomes a crucial factor during stress periods. Our results challenge the notion that spreads predominantly capture credit risk and suggest it must be reassessed during periods of financial distress.

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