Title: Determinants of CREDIT RISK AND LIQUIDITY RISK IN CONVENTIONAL COMMERCIAL BANKS THAT GO PUBLIC IN BEI 2009-2013
Author: Rezha Pradipta Dewanto
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
The existence of a healthy bank is a prerequisite for a healthy economy. To keep a bank healthy, it is necessary to pay attention to the bank's ability to manage risk. The biggest risks faced by banks are credit risk and liquidity risk. Credit risk and liquidity risk are the main risks because banks run their business as intermediaries. This research examines the bank's internal determinants of credit risk and liquidity risk. The dependent variables in this research are credit risk and liquidity risk. The independent variables in this research are company size (SIZE), capital adequacy ratio (CAR), profitability (ROA), leverage (DER), and bank age (AGE). This research was conducted on 33 samples of conventional commercial banks that went public in Indonesia. The research period was 2009 to 2013. The analysis test used panel data regression so that the observations obtained were 165. The research results showed that SIZE and ROA had a negative effect, CAR and AGE had a positive effect, and the effect of DER was not significant on credit risk as measured by NPL. Meanwhile, regarding liquidity risk as measured by LDR, only the AGE variable has a positive influence. The SIZE, CAR, ROA and DER variables do not affect liquidity risk as measured by LDR.
Keywords: Conventional Commercial Banks, Credit Risk, Liquidity Risk, company size, capital adequacy ratio, Return on Assets, leverage, company age
Sources: http://repository.unair.ac.id/33616/
