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Authors: Diah Dianti Rohani 1 ; Ikaputera Waspada 2 and Amir Machmud 2

Affiliations: 1 Universitas Pendidikan Indonesia, Jl. Dr. Setiabudhi 229, Bandung, Indonesia ; 2 Universitas Pendidikan Indonesia, Indonesia

Keyword(s): Liquidity Risk, Credit Risk, Profitability, Banking, Loan to Deposit Ratio (LDR), Non-Performing Loan (NPL), Return On Assets (ROA).

Abstract: This paper aims to analyze the effect of liquidity risk and credit risk to the profitability in conventional banks. The method used is explanatory survey. The data used in this study was secondary data from the annual financial statements of each of the banks listed on the stock exchanges of Indonesia in 2007 - 2016. The samples used are top 10 conventional Banks (chosen by asset). The method used is panel data regression model. Liquidity risk is measured by Loan to Deposit Ratio (LDR), credit risk is measured by Non-Performing Loan (NPL) and profitability is measured by Return On Assets (ROA). The result showed that liquidity risk (LDR) and credit risk (NPL) have significant negative impact on the profitability (ROA) in conventional banks.

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Paper citation in several formats:
Rohani, D.; Waspada, I. and Machmud, A. (2018). The Analysis of the Effect of Liqudity Risk and Credit Risk to the Profitability in Conventional Banks of Indonesia. In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - ICEEE; ISBN 978-989-758-308-7, SciTePress, pages 180-183. DOI: 10.5220/0006882801800183

@conference{iceee18,
author={Diah Dianti Rohani. and Ikaputera Waspada. and Amir Machmud.},
title={The Analysis of the Effect of Liqudity Risk and Credit Risk to the Profitability in Conventional Banks of Indonesia},
booktitle={Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - ICEEE},
year={2018},
pages={180-183},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006882801800183},
isbn={978-989-758-308-7},
}

TY - CONF

JO - Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - ICEEE
TI - The Analysis of the Effect of Liqudity Risk and Credit Risk to the Profitability in Conventional Banks of Indonesia
SN - 978-989-758-308-7
AU - Rohani, D.
AU - Waspada, I.
AU - Machmud, A.
PY - 2018
SP - 180
EP - 183
DO - 10.5220/0006882801800183
PB - SciTePress