The full text of this article
The impact of credit and liquidity risk on bank financial performance: the case of Indonesian Conventional Bank with total asset above 10 trillion Rupiah
by Achsania Ruziqa
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 6, No. 2, 2013
Abstract: This paper examines the impact of credit and liquidity risk on bank's financial performance. This study especially focuses on Indonesian Conventional Bank with total asset above 10 trillion Rupiah within 2007 to 2011. Bank financial performances are measured by return on asset, return on equity and net interest margin; credit risk are measured by non-performing loan ratio and liquidity risk are measured by liquidity ratio. Furthermore, this study also measured bank capital and bank size's effect on bank financial performance. The results show that credit risk has negative significant effect on ROA and ROE. While liquidity ratio was found having positive significant effect on ROA and ROE. The effect of bank capital is positively significant on ROA, ROE, and NIM, while bank size was only found to have negative significant impact on NIM. Both credit risk and liquidity ratio was found to have insignificant impact on NIM.
Online publication date: Sat, 28-Jun-2014
is only available to individual subscribers or to users at subscribing institutions.
Go to Inderscience Online Journals to access the Full Text of this article.
Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.
Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economic Policy in Emerging Economies (IJEPEE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable).
See our Orders page to subscribe.
If you still need assistance, please email email@example.com