Third Party Fund Analysis Towards Bank Risk in the Banking Industry in Indonesia Stock Exchange

Abstract

This study aims to determine third party fund analysis towards bank risk in the banking industry in Indonesia stock exchange. An increase bank risk through assets and an increase in the total of third party funds that must be accepted banks as well as that development of course assets which tends to decline, therefore research is conducted on how third party funds affect bank risk in the banking industry. The subject or population in this study focuses on all banking industries that have been listed on the Indonesia Stock Exchange for the period 2014-2018. The data source uses secondary data. The sampling technique used purposive sampling. The number of samples in this study were 200 samples (40 companies with 5 years of research). The method of data analysis in this study used multiple linear regression with SPSS 16 as a measuring tool. Research results show the variable third party funds had no effect on bank risk using risk weighted assets. The variable third party fund has a negative and significant effect on bank risk using the loan loss provision. The variable third party fund has a negative and significant effect on bank risk using the Z Score. The variable third party fund has no effect on bank risk using liquidity creation. The variable third party fund has a positive and significant effect on bank risk using stock returns.

Profitability: Third Party Funds and Credit Risk Study on Indonesian Digital Banking

“…Research conducted by Nitasari and Murni (2016) shows third party funds have no effect towards profitability but result research by Hermuningsih (2019) show third party funds have positive effect on profitability. Research conducted by jorion and zhang (2009), third party funds have effect towards credit risk but another results shown by Mairani and Patrisia (2020) show third party fund have no effect towards credit risk in bank. Research by Yousuf and Felföldi (2018) shown that Credit risk did not have effect towards profitability bank but another results shown by Rahmanulah (2021), credit risk have effect towards profitability.…”