PENGARUH PENERAPAN MANAJEMEN RISIKO TERHADAP KINERJA KEUANGAN INDUSTRI PERBANKAN

Abstract

This research aimed to examine whether risk management affected financial performance of banking companies that were listed on the Indonesia Stock Exchange (IDX) or not. The risks which were used namely credit risk that was measured by NPL (Non-Performing Loan), liquidity risk that was measured by LDR (Loan to Deposit Ratio), operational risk that was measured by BOPO (Operational Cost on Operational Income), capital risk that was measured by CAR (Capital Adequacy Ratio), and interest risk that was measured by NIM (Net Interest Margin). While, financial performance was measured by ROA (Return on Asset). The data were secondary, in the form of annual reports of conventional general banks that were listed on IDX for 5 periods, 2017-2021. Moreover, the data collection technique used purposive sampling. In line with that, there were 38 samples of general banks. Furthermore, the data analysis technique used multiple linear regression with SPSS. The result showed that NPL had a significantly negative effect on ROA. However, LDR did not affect ROA. On the other hand, BOPO had a significantly negative effect on ROA. Meanwhile, CAR did not affect ROA. In contrast, NIM had a significantly positive effect on ROA.