Analysis of the Influence of Credit Risk, Market Risk, Liquidity Risk and Operational Risk on Bank’s Financial Profitability “Regional Development Bank”

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Abstract

This study aims to examine the influence of credit risk, market risk, liquidity risk and operational risk on the financial profitability of the bank “Regional Development Bank”. This research includes causality research using a quantitative approach. The study population is the Regional Development Bank registered with the Financial Services Authority. Sampling is done by purposive sampling technique, which is based on the criteria of the bank that publishes financial statements for 5 consecutive years starting in 2012 until 2016. The data analysis technique used is multiple linear regression analysis. The results in this study indicate that: (1) Credit risk does not have a significant negative influence on bank financial profitability at Regional Development Banks; (2) Market risk does not have a significant negative influence on bank financial profitability at Regional Development Banks; (3) Liquidity risk does not have a significant negative influence on bank financial profitability at Regional Development Banks; (4) Operational risk has a significant negative influence on bank financial profitability at Regional Development Banks.

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