Dampak Rasio Kecukupan Modal dan Risiko terhadap Profitabilitas pada Bank Konvensional di Indonesia

https://doi.org/10.35912/simo.v5i2.3469
Published: Oct 9, 2024

Abstract:

Purpose: To determine the effect of capital adequacy ratio, market risk, credit risk, liquidity risk, operational risk, bank size, and other variables on banking profitability in Indonesia.
Methodology: Panel data regression analysis; purposive sampling; capital adequacy ratio, market risk, credit risk, liquidity risk, operational risk, bank size as instruments; 39 banks listed on Indonesia Stock Exchange; return on assets as dependent variable.
Results: Capital adequacy ratio and bank size have a positive and significant influence on profitability. Credit risk and operational risk have a significant negative effect. Market risk and liquidity risk have no significant effect.
Conclusions: when the risk of credit default increases, banks experience a decrease in income generated from lending activities. Thus, effective credit risk management is essential for banks to minimize the risk of default and maintain profitability stability. The higher the operational risk, the lower the bank's profitability level.
Limitations: The study is limited to data from banks listed on the Indonesia Stock Exchange between 2018-2024, so it may not reflect conditions outside this period or region.
Contribution: This research is useful in the fields of banking management, corporate finance, and investment strategy.

Keywords:
1. capital adequacy
2. bank size
3. risk
4. profitability
Authors:
1 . Nurul Kamila
2 . Febrisi Dwita
3 . Triyogo Moelyo Adhi
4 . Nia Desliana
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How to Cite
Kamila, N., Dwita , F., Adhi, T. M., & Desliana, N. (2024). Dampak Rasio Kecukupan Modal dan Risiko terhadap Profitabilitas pada Bank Konvensional di Indonesia . Studi Ilmu Manajemen Dan Organisasi, 5(2), 209–223. https://doi.org/10.35912/simo.v5i2.3469
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Issue & Section
Vol. 5 No. 2 (2024): Oktober
Articles
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References

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    Al-Eitan, G. N., & Bani-Khalid, T. O. (2019). Credit risk and financial performance of the Jordanian commercial banks: A panel data analysis. Academy of Accounting and Financial Studies Journal, 23(5), 1-13.

    Ali, B., & Oudat, M. S. (2020). Financial risk and the financial performance in listed commercial and investment banks in Bahrain bourse. International Journal of Innovation, Creativity and Change, 13(12), 160-180.

    Aluonzi, B., Byamukama, E., Marus, E., & Charity, T. (2024). Credit risk management: An imperative for profitability of Centenary Bank Kabale Branch. International Journal of Financial, Accounting, and Management, 6(1), 19-31.

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    Jaouad, E., & Lahsen, O. (2018). Factors affecting bank performance: empirical evidence from Morocco. European Scientific Journal, 14(34), 255-267.

    Jeyan Suganya, D., & Kengatharan, L. (2018). Impact of bank internal factors on profitability of commercial banks in sri lanka a panel dataanalysis.

    Kajola, S. O., Sanyaolu, W. A., Alao, A., & Ojunrongbe, O. (2019). Liquidity and profitability dynamics: evidence from the Nigerian banking sector. Accounting and Taxation Review, 3(2), 1-12.

    Kamande, E. G. (2017). The effect of bank specific factors on financial performance of commercial banks in Kenya.

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    Kumar, V., Acharya, S., & Ho, L. T. (2020). Does monetary policy influence the profitability of banks in New Zealand? International Journal of Financial Studies, 8(2), 35.

    Lohano, K., & Kashif, M. (2019). Factors affecting the profitability of banks in developing countries. NUML International Journal of Business & Management ISSN, 14(2), 2410-5392.

    Mansyur, N. (2018). Pengaruh Risiko Pasar terhadap Profitabilitas Perusahaan Subsektor Bank pada Bursa Efek Indonesia. Jurnal Maksipreneur: Manajemen, Koperasi, Dan Entrepreneurship, 7(2), 107-116.

    Mardiana, M., & Purnamasari, P. E. (2018). The effect of risk management on financial performance with good corporate governance as a moderation variable. Management and economics journal (mec-j), 2(3), 257-268.

    Moussa, M., & Boubaker, A. (2020). Impact of Liquidity on Bank Profitability: Case of Tunisia. European Journal of Accounting, Auditing and Finance Research, 8(2), 20-37.

    Mudanya, L. E., & Muturi, W. (2018). Effects of financial risk on profitability of commercial banks listed in the Nairobi Securities Exchange. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 1(1).

    Nyabaga, R. M. i., & Wepukhulu, J. M. (2020). Effect of firm characteristics on financial performance of listed commercial banks in Kenya. International Journal of Economics and Financial Issues, 10(3), 255.

    Rahman, H.-u., Yousaf, M. W., & Tabassum, N. (2020). Bank-specific and macroeconomic determinants of profitability: A revisit of Pakistani banking sector under dynamic panel data approach. International Journal of Financial Studies, 8(3), 42.

    Rahman, M. M., Hamid, M. K., & Khan, M. A. M. (2015). Determinants of bank profitability: Empirical evidence from Bangladesh. International journal of business and management, 10(8), 135.

    Ramdani, D., & Prayitno, Y. H. (2023). The leverage and company size impact on delay in the audit. International Journal of Financial, Accounting, and Management, 5(3), 265-279.

    Rizal, F., & Rofiqo, A. (2020). Determinants of Sharia Banking Profitability: Empirical Studies in Indonesia 2011-2020. El Barka: Journal of Islamic Economics and Business, 3(1), 137-161.

    Sari, A. P., & Sembiring, F. M. (2022). Pengaruh Likuiditas, Leverage dan Aktivitas terhadap Kondisi Financial Distress yang Dimoderasi oleh Profitabilitas: Studi pada Perusahaan Pertambangan yang Terdaftar di BEI Periode 2015-2019. Studi Ilmu Manajemen dan Organisasi, 3(1), 199-211. doi:10.35912/simo.v3i1.857

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    Shamas, G., Zainol, Z., & Zainol, Z. (2018). The impact of bank’s determinants on liquidity risk: Evidence from Islamic banks in Bahrain. Journal of Business & Management (COES&RJ-JBM), 6, 1-22.

    Shuremo, G. A. (2016). Determinants of banks’ profitability: Evidence from banking industry in Ethiopia. International Journal of Economics, Commerce and Management, 4(2), 442-463.

    Skoglund, J., & Chen, W. (2015). Financial risk management: Applications in market, credit, asset and liability management and firmwide risk: John Wiley & Sons.

    Suhadi, I. A. (2024). Impact of intellectual capital on financial performance with company size moderation. International Journal of Financial, Accounting, and Management, 6(1), 47-59.

    Supriyono, R., & Herdhayinta, H. (2019). Determinants of Bank Profitability: The case of the regional development bank (BPD Bank) in Indonesia. Journal of Indonesian Economy and Business, 34(1), 1-17.

    Taufika, Y., Raneoc, A. P., Ghasarmad, R., & Adame, M. (2020). Profitability determinants of Islamic private-owned banks and conventional state-owned banks in Indonesia. International Journal of Innovation, Creativity and Change, 11(2), 432-450.

    Wamalwa, M. F., & Mukanzi, C. (2020). Influence Of Financial Risk Managements Practices On Financial Performance Of Commercial Banks In Kenya, A Case Of Banks In Kakamenga County.

    Zhongming, T., Frimpong, S., & Guoping, D. (2019). Impact of financial risk indicators on banks’ financial performance in Ghana. Business and Economic Research, 9(4), 23-52.

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  2. Adalessossi, K., & Erdo?an, E. O. (2019). Analysis of factors influencing bank profitability: evidence from the West African economic and monetary union banking sector. Journal of Accounting, Finance and Auditing Studies, 5(1), 122-154.
  3. Adeusi, S. O., Akeke, N. I., Adebisi, O. S., & Oladunjoye, O. (2014). Risk management and financial performance of banks in Nigeria. Risk Management, 6(31), 123-129.
  4. Affandi, A. (2017). Analisis Perilaku Likuiditas Bank Umum Syariah dan Unit Usaha Syariah di Indonesia Tahun 2010-2015.
  5. Agapova, A., & McNulty, J. E. (2016). Interest rate spreads and banking system efficiency: General considerations with an application to the transition economies of Central and Eastern Europe. International Review of Financial Analysis, 47, 154-165.
  6. Al-Eitan, G. N., & Bani-Khalid, T. O. (2019). Credit risk and financial performance of the Jordanian commercial banks: A panel data analysis. Academy of Accounting and Financial Studies Journal, 23(5), 1-13.
  7. Ali, B., & Oudat, M. S. (2020). Financial risk and the financial performance in listed commercial and investment banks in Bahrain bourse. International Journal of Innovation, Creativity and Change, 13(12), 160-180.
  8. Aluonzi, B., Byamukama, E., Marus, E., & Charity, T. (2024). Credit risk management: An imperative for profitability of Centenary Bank Kabale Branch. International Journal of Financial, Accounting, and Management, 6(1), 19-31.
  9. Asiah, N. (2017). Pengaruh Sensitivitas Inflasi, Bank Size, CapitalAdequacy Ratio Terhadap Penyaluran Kredit Pada Bank Umum Swasta Nasional Devisa. STIE Perbanas Surabaya.
  10. Badawi, A. (2017). Effect of credit risk, liquidity risk, and market risk banking to profitability bank (study on devised banks in Indonesia stock exchange). European Journal of Business and Management, 9(29), 1-8.
  11. Bagh, T., Khan, M. A., & Sadaf, R. (2017). The underlying impact of risk management practices on banks financial performance: An empirical analysis on financial sector of Pakistan. International journal of research in business studies and management, 4(7), 10-23.
  12. Banking, R. (2020).
  13. Baroroh, H. (2019). Analisis Faktor-Faktor yang Mempengaruhi Volume Penempatan Dana Perbankan Syariah pada Sertifikat Bank Indonesia Syariah. Jurnal At-Tamwil: Kajian Ekonomi Syariah, 1(1), 32-51.
  14. Budiyono, B. (2017). Factors Affecting Banking Profit Ability in Indonesia (Studies at Bank BRI, Bank BNI, and Bank BTN). International Journal of Economics, Business and Accounting Research (IJEBAR), 1(01).
  15. Caliskana, M., & Lecunab, H. K. S. (2020). The determinants of banking sector profitability in Turkey1, 2. Business and economics research journal, 11(1), 161-167.
  16. Durguti, E. A., Krasniqi, E. H., & Krasniqi, D. (2020). Assessing the performance of factors affecting the profitability of the banking system: Evidence from Kosovo. European Journal of Sustainable Development, 9(2), 304-304.
  17. Fachrian, Z., & Hidayat, W. W. (2023). The Influence of Liquidity Ratio as Current (CR),(DER) Rasio Leverage and Asset Structure to Return on Investment of Coal Companies. International Journal of Accounting and Management Information Systems, 1(1), 17-31.
  18. Gumbo, L., Mashizha, M., Simon, C., & Phiri, P. (2023). Conversational Artificial Intelligence (AI) and Bank Operational Efficiency. International Journal of Accounting and Management Information Systems, 1(2), 109-121.
  19. Gweyi, M. (2018). Effect of Liquidity Risk on Financial Performance of Deposit Taking Savings and Credit Societes In Kenya.
  20. Ikapel, O. F., Namusonge, G., & Sakwa, M. (2019). Financial management efficiency and financial performance of commercial banks listed on the Nairobi securities exchange. International Journal of Research and Innovation in Social Science, 3(10), 2454-6186.
  21. Imani, A., & Pracoyo, A. (2018). Analysis of the effect of capital, credit risk, and liquidity risk on profitability in banks. Jurnal Ilmu Manajemen & Ekonomika, 10(2), 44-50.
  22. Industry, D. C. o. I. (2016). Banking on the Future: Vision 2020, Indian Report, September 16 Retrieved from https://www2.deloitte.com/content/dam/Deloitte/in/Documents/financial-services/in-fs-deloitte-banking-colloquium-thoughtpaper-cii.pdf
  23. Irawati, N., Maksum, A., Sadalia, I., & Muda, I. (2019). Financial performance of indonesian’s banking industry: the role of good corporate governance, capital adequacy ratio, non performing loan and size. International Journal of Scientific and Technology Research, 8(4), 22-26.
  24. Iskandar, A. S., Yahya, N. C., & Wahid, Z. A. (2019). Determinants Of Commercial Banks’ Profitability In Malaysia.
  25. Jadah, H. M., Alghanimi, M. H. A., Al-Dahaan, N. S. H., & Al-Husainy, N. H. M. (2020). Internal and external determinants of Iraqi bank profitability. Banks and Bank Systems, 15(2), 79-93.
  26. Jaouad, E., & Lahsen, O. (2018). Factors affecting bank performance: empirical evidence from Morocco. European Scientific Journal, 14(34), 255-267.
  27. Jeyan Suganya, D., & Kengatharan, L. (2018). Impact of bank internal factors on profitability of commercial banks in sri lanka a panel dataanalysis.
  28. Kajola, S. O., Sanyaolu, W. A., Alao, A., & Ojunrongbe, O. (2019). Liquidity and profitability dynamics: evidence from the Nigerian banking sector. Accounting and Taxation Review, 3(2), 1-12.
  29. Kamande, E. G. (2017). The effect of bank specific factors on financial performance of commercial banks in Kenya.
  30. Khoiriah, N., Yusda, D. D., Oktaria, E. T., & Hairudin, H. (2024). Peran Kredit Usaha Rakyat (KUR) terhadap Perkembangan UMKM (Studi Kasus Bank BRI Unit Kedaton). Jurnal Akuntansi, Keuangan, dan Manajemen, 5(2), 111-119. doi:10.35912/jakman.v5i2.2383
  31. King’ori, S. N., Kioko, W. C., & Shikumo, H. D. (2017). Determinants of Financial Performance of Microfinance Banks in Kenya.
  32. Kumar, V., Acharya, S., & Ho, L. T. (2020). Does monetary policy influence the profitability of banks in New Zealand? International Journal of Financial Studies, 8(2), 35.
  33. Lohano, K., & Kashif, M. (2019). Factors affecting the profitability of banks in developing countries. NUML International Journal of Business & Management ISSN, 14(2), 2410-5392.
  34. Mansyur, N. (2018). Pengaruh Risiko Pasar terhadap Profitabilitas Perusahaan Subsektor Bank pada Bursa Efek Indonesia. Jurnal Maksipreneur: Manajemen, Koperasi, Dan Entrepreneurship, 7(2), 107-116.
  35. Mardiana, M., & Purnamasari, P. E. (2018). The effect of risk management on financial performance with good corporate governance as a moderation variable. Management and economics journal (mec-j), 2(3), 257-268.
  36. Moussa, M., & Boubaker, A. (2020). Impact of Liquidity on Bank Profitability: Case of Tunisia. European Journal of Accounting, Auditing and Finance Research, 8(2), 20-37.
  37. Mudanya, L. E., & Muturi, W. (2018). Effects of financial risk on profitability of commercial banks listed in the Nairobi Securities Exchange. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 1(1).
  38. Nyabaga, R. M. i., & Wepukhulu, J. M. (2020). Effect of firm characteristics on financial performance of listed commercial banks in Kenya. International Journal of Economics and Financial Issues, 10(3), 255.
  39. Rahman, H.-u., Yousaf, M. W., & Tabassum, N. (2020). Bank-specific and macroeconomic determinants of profitability: A revisit of Pakistani banking sector under dynamic panel data approach. International Journal of Financial Studies, 8(3), 42.
  40. Rahman, M. M., Hamid, M. K., & Khan, M. A. M. (2015). Determinants of bank profitability: Empirical evidence from Bangladesh. International journal of business and management, 10(8), 135.
  41. Ramdani, D., & Prayitno, Y. H. (2023). The leverage and company size impact on delay in the audit. International Journal of Financial, Accounting, and Management, 5(3), 265-279.
  42. Rizal, F., & Rofiqo, A. (2020). Determinants of Sharia Banking Profitability: Empirical Studies in Indonesia 2011-2020. El Barka: Journal of Islamic Economics and Business, 3(1), 137-161.
  43. Sari, A. P., & Sembiring, F. M. (2022). Pengaruh Likuiditas, Leverage dan Aktivitas terhadap Kondisi Financial Distress yang Dimoderasi oleh Profitabilitas: Studi pada Perusahaan Pertambangan yang Terdaftar di BEI Periode 2015-2019. Studi Ilmu Manajemen dan Organisasi, 3(1), 199-211. doi:10.35912/simo.v3i1.857
  44. Sari, W. F., Saputra, D., & Yasmin, Y. (2024). Analisis Kinerja Keuangan Bank BUMN dan Bank Swasta Indonesia: Studi Komparatif. Studi Ilmu Manajemen dan Organisasi, 5(2), 269-283. doi:10.35912/simo.v5i2.3536
  45. Sathyamoorthi, C., Mapharing, M., Mphoeng, M., & Dzimiri, M. (2020). Impact of financial risk management practices on financial performance: Evidence from commercial banks in Botswana. Applied Finance and Accounting, 6(1), 25-39.
  46. Shamas, G., Zainol, Z., & Zainol, Z. (2018). The impact of bank’s determinants on liquidity risk: Evidence from Islamic banks in Bahrain. Journal of Business & Management (COES&RJ-JBM), 6, 1-22.
  47. Shuremo, G. A. (2016). Determinants of banks’ profitability: Evidence from banking industry in Ethiopia. International Journal of Economics, Commerce and Management, 4(2), 442-463.
  48. Skoglund, J., & Chen, W. (2015). Financial risk management: Applications in market, credit, asset and liability management and firmwide risk: John Wiley & Sons.
  49. Suhadi, I. A. (2024). Impact of intellectual capital on financial performance with company size moderation. International Journal of Financial, Accounting, and Management, 6(1), 47-59.
  50. Supriyono, R., & Herdhayinta, H. (2019). Determinants of Bank Profitability: The case of the regional development bank (BPD Bank) in Indonesia. Journal of Indonesian Economy and Business, 34(1), 1-17.
  51. Taufika, Y., Raneoc, A. P., Ghasarmad, R., & Adame, M. (2020). Profitability determinants of Islamic private-owned banks and conventional state-owned banks in Indonesia. International Journal of Innovation, Creativity and Change, 11(2), 432-450.
  52. Wamalwa, M. F., & Mukanzi, C. (2020). Influence Of Financial Risk Managements Practices On Financial Performance Of Commercial Banks In Kenya, A Case Of Banks In Kakamenga County.
  53. Zhongming, T., Frimpong, S., & Guoping, D. (2019). Impact of financial risk indicators on banks’ financial performance in Ghana. Business and Economic Research, 9(4), 23-52.