The Role of Non-Performing Asset, Capital, Adequacy and Insolvency Risk on Bank Performance: A Case Study in Indonesia

• 발행기관: 한국유통과학회
• 저자명: Hersugondo HERSUGONDO Nabila ANJANI Imang Dapit PAMUNGKAS
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.3, 319~329쪽, 전체 11쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.03.30

영문 초록

The study examines the impact of bank-level factors like non-performing assets, capital adequacy, and insolvency risk on bank performance. This study employs a quantitative method with panel data regression. The data was taken from the annual financial statements of state-owned commercial banks and private commercial banks in Indonesia from 2015 to 2019 using a purposive sampling method with a total sample of 470 observations. The result of the study shows that non-performing assets (NPA) have a significant negative impact on bank performance. Capital adequacy has a significant negative impact on bank performance. Insolvency risk for a bank means it cannot repay its depositors because its liabilities are greater than its assets; therefore, it has a significant impact on bank performance. This study is expected to help banks to understand how to manage the risks they face and to maintain their performance. This study uses ‘size’ and ‘age of bank’ as control variables and for credit risk and insolvency risk, Z-Score is used.

목차

1. Introduction

2. Literature Review

3. Research Methods and Materials

4. Result and Discussion

5. Conclusion

References

키워드

Bank Performance Non-Performing Asset Capital Adequacy Insolvency Risk