The Effect of Credit Risk as a Mediator Between Liquidity and Capital Adequacy on Bank Performance in Banking Companies Listed on the Idx

Safitri, Julia; Kadarningsih, Ana; Din, Maaz Ud; Rahayu, Sri

doi:10.33633/jpeb.v5i2.3550

Cited by 4 publications

(3 citation statements)

References 28 publications

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“…Financing risk on bank performance shows a coefficient value of 0.25 and a p-value of 0.05, which means that financing risk significantly affects bank performance. These results support previous studies, such as studies of Wahyudi et al (2020), Safitri and Kadarningsih (2020), and Safitri and Taolin (2020).…”

Section: Share | Volume 10 | Number 1 | Jan -Jun 2021supporting

confidence: 93%

Do Liquidity and Capital Adequacy Ratio Matter for Islamic Banks Performance in Indonesia? An Analysis Using Financing Risk as Mediator

Safitri

Rahmati²,

Jayadi

et al. 2021

SJEKI

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This study is driven by the inconsistent findings of previous research on assessing the determinants of banks' performance. In addition, financing risk has been indicated as a significant variable in mediating the related research but failed to incorporate in previous research. Therefore, this study aims to assess the role of liquidity and Capital Adequacy Ratio (CAR) on Islamic bank's performance in Indonesia using financing risk as a mediator. Data were collected from 14 samples operating in Indonesia in the period 2013-2019. They were then analyzed using Partial Least Squares – Structural Equation Modelling (PLS-SEM) with Warp PLS 7.0 as a tool of analysis. The results show that variable liquidity (FDR) significantly influences Bank Performance mediated by Financing Risk (NPF). Meanwhile, variable CAR shows no significant influence on Bank Performance even when it was mediated by the Financing Risk variable (NPF). This finding implies that providing short-term financing is more profitable for an Islamic bank than a longer one. This finding is in line with the Commercial Loan Theory, which states that it is better to provide loans in the short term to minimize the possibility of defaults that will impact the bank's performance.==================================================================================================ABSTRAK – Apakah Likuiditas dan Rasio Kecukupan Modal mempengaruhi Kinerja Bank Syariah di Indonesia? Suatu Analisis menggunakan Risiko Pembiayaan sebagai Mediator. Penelitian ini didorong oleh tidak konsistennya temuan penelitian sebelumnya dalam menilai determinan kinerja bank. Selain itu, risiko pembiayaan telah terindikasi sebagai variabel yang signifikan dalam memediasi pengaruh beberapa variabel penilaian kinerja bank syariah, tetapi tidak diakomodir dalam penelitian-penelitian sebelumnya. Oleh karena itu, penelitian ini bertujuan untuk menilai peran variabel likuiditas dan CAR terhadap kinerja bank syariah di Indonesia dengan menggunakan risiko pembiayaan sebagai mediator. Data penelitian dikumpulkan dari 14 bank syariah yang beroperasi di Indonesia. Analisis data dilakukan dengan menggunakan PLS-SEM dengan WarpPLS 7.0. Hasil penelitian menunjukkan bahwa likuiditas berpengaruh terhadap kinerja bank bank syariah dengan dimediasi oleh risiko pembiayaan (NPF). Sedangkan variabel CAR tidak menunjukkan pengaruh yang signifikan terhadap kinerja bank syariah walaupun dimediasi oleh NPF. Penelitian mempunyai implikasi bahwa memberikan pembiayaan jangka pendek lebih menguntung bagi bank syariah dari pada pembiayaan jangka panjang. Hal ini sejalan dengan Commercial Loan Theory yang menyebutkan bahwa memberikan pinjaman dalam jangka pendek lebih menguntungkan karena dapat meminimalisir terjadinya wanprestasi yang berdampak pada peningkatan kinerja bank.

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Section: Share | Volume 10 | Number 1 | Jan -Jun 2021supporting

confidence: 93%

Do Liquidity and Capital Adequacy Ratio Matter for Islamic Banks Performance in Indonesia? An Analysis Using Financing Risk as Mediator

Safitri

Rahmati²,

Jayadi

et al. 2021

SJEKI

Self Cite

View full text Add to dashboard Cite

show abstract

“…In carrying out its functions, bank performance is influenced by the level of public trust, so banks need to keep up good performance (Safitri, Kadarningsih, Din, & Rahayu, 2020). Poor bank performance will fail and lead to a financial crisis which will have a negative impact on economic development (Zuzevičiūtė, Pranevičienė, Simanavičienė, & Vasiliauskienė, 2017).…”

Section: Introductionmentioning

confidence: 99%

Determinants of Commercial Bank Performance with Guarantee Interest as Moderating Variables in Banks Listed on IDX 2016 – 2020

Hartanto

Syarif

2022

jss

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This study aims to analyze and examine the effect of the Efficiency Ratio (BOPO), Capital Adequacy Ratio (CAR), Loan To Deposit Ratio (LDR), Non-Performing Loan (NPL), Size (SIZE) with LPS Guarantee Interest Rate (SBP) as a moderating variable on the Return On Assets (ROA) of Commercial Banks listed on the Indonesia Stock Exchange for the 2016-2020 period. The sampling method used is purposive sampling, including the observation of 38 commercial banks listed on the Indonesia Stock Exchange from 2016 to 2020. The statistical analysis method used is a descriptive quantitative method with the type of data being time series and cross-section using moderated regression analysis method (MRA). The results showed that the determinants of Operating Costs with Operating Income (BOPO) and Guarantee Interest Rate (SBP) had a positive and significant effect on Return On Assets (ROA), Non Performing Loans (NPL) had a significant negative effect on Return On Assets (ROA). The Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Bank Size (SIZE) do not affect Return On Assets (ROA). The results of the Moderating Guarantee Interest Rate (SBP) moderate the effect of Operating Costs with Operating Income (BOPO) and moderate the effect of Non-Performing Loans (NPL) on Return On Assets (ROA). It is believed that the Guaranteed Interest Rate (SBP) has force power as a determinant of the level of profitability or performance of the bank, either directly or indirectly.

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“…A low turnover of working capital indicates an excess of working capital which may be due to low turnover of inventory, receivables or the presence of a cash balance that is too large. According to Satriya and Lestari (2012), Parlina (2017), Saputra (2017) and Safitri and Utami (2017) explained that working capital turnover has a positive and significant effect on profitability. The company uses working capital for its operational activities.…”

Section: Introductionmentioning

confidence: 99%

Working Capital Management Relationship to Profitability of Plastic and Packaging Sub-Sector Companies on the Indonesia Stock Exchange

Purbowati

2022

JARUDA

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The purpose of this study isto determine the influence of working capital management consisting of variables Cash Turnover, Inventory Turnover, Working Capital Turnover affecting profitability in Plastic and Packaging Sub-Sector companies listed on the IDX. The research approach uses quantitative descriptive methods. The population that will be used is the financial report data of plastic and packaging sub-sector companies listed on the Indonesia Stock Exchange with the purposive sampling sampling method with the criteria of plastic and packaging sub-sector companies listed on the Indonesia Stock Exchange which have complete financial statements in the period 2011 - 2020 so that the data used are 60 financial statement data. Data analysis uses multiple linear regression. The results showed that thereis a significant positive influence of cash turnover on profitability, meaning that the higher the cash turnover, the higher the profitability, thehigher the cash turnover will be better because this means that the higher the efficiency of cash use and the greater the profit obtained. There is a significant positive effect of inventory turnover on profitability, meaning that the higher the inventory turnover, the higher the profitability, the higher the inventory turnover, the higher the profit obtained. There is no effect of capital turnover on profitability, which means that the rise and fall of capital turnover does not affect the rise and fall of profitability.

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The Effect of Credit Risk as a Mediator Between Liquidity and Capital Adequacy on Bank Performance in Banking Companies Listed on the Idx

Cited by 4 publications

References 28 publications

Do Liquidity and Capital Adequacy Ratio Matter for Islamic Banks Performance in Indonesia? An Analysis Using Financing Risk as Mediator

Do Liquidity and Capital Adequacy Ratio Matter for Islamic Banks Performance in Indonesia? An Analysis Using Financing Risk as Mediator

Determinants of Commercial Bank Performance with Guarantee Interest as Moderating Variables in Banks Listed on IDX 2016 – 2020

Working Capital Management Relationship to Profitability of Plastic and Packaging Sub-Sector Companies on the Indonesia Stock Exchange

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