The Effect of Credit Risk Management on Financial Performance in Indonesian Banking

Abstract

The research has done on purpose to help determining the influence of credit risk management toward financial presentation in Indonesian banking from 2017 to 2021. CAR, NPLR, LDR, NIM, and Bank Size ratios are used to measure credit risk, while ROA and also ROE ratios tend to be applied in order to help assess financial performance. The research technique and data used in this research are quantitative descriptive, including secondary data contained in the financial reports of 33 Indonesian banks registered on the Indonesia Stock Exchange from 2017 to 2021 that satisfied the sampling criteria. This rstudy findings are shown that credit risk management (as measured by CAR) has no intermediate impact on ROA and ROE, NPLR gives such a negative and also significant influence toward financial performance as assesed by ROA and ROE, LDR has no impact on financial presentation as assesed by ROA and ROE, NIM gives no influence toward financial performance as calculated by ROA and ROE, and also Bank Size (BS) gives such a positive and also significant unfluence toward financial presentation as assesed by ROA and ROE.