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학술논문

The Effect of Bad Credit and Liquidity on Bank Performance in Indonesia

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영문명
발행기관
한국유통과학회
저자명
Suyanto SUYANTO
간행물 정보
『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.3, 451~458쪽, 전체 8쪽
주제분류
경제경영 > 경제학
파일형태
PDF
발행일자
2021.03.30
무료

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영문 초록

The objective of this research is to analyze the effect of bad credit and liquidity on bank performance with the mediation of capital adequacy. Data were provided by banking institutions listed on the Indonesia Stock Exchange from the period of 2011–2019. The analysis technique was PLS-SEM supported by an application named WarpPLS 6.0. The results of the research show that the effect of bad credit and liquidity on bank performance is not significant. A high level of bad credit is associated with a low level of bank performance. Bank earnings decline along with low profitability. This relationship is not significant because banks can still cover some proportions of bad credit through capital availability. Capital adequacy as an intervening variable has mediated partially the effect of bad credit and liquidity on bank performance. Besides, capital adequacy has a strong effect on credit distribution. Agency theory says that the owner of the fund (the savers of saving account, current account, deposit account) is called principal while the bank as the trusted institution to manage the fund is called an agent. If customers fulfill their duty, then bad credit never happens.

목차

1. Introduction
2. Literature Review
3. Methods
4. Results and Discussion
5. Conclusion
References

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APA

Suyanto SUYANTO. (2021).The Effect of Bad Credit and Liquidity on Bank Performance in Indonesia. The Journal of Asian Finance, Economics and Business(JAFEB), 8 (3), 451-458

MLA

Suyanto SUYANTO. "The Effect of Bad Credit and Liquidity on Bank Performance in Indonesia." The Journal of Asian Finance, Economics and Business(JAFEB), 8.3(2021): 451-458

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