Banking activities involve collecting funds from customers and redistributing them in the form of loans with added interest as the bank's income. All forms of banking activities carry risks that must be mitigated to avoid significant losses and impact on the financial performance of the bank. In this study, one of the bank risks being examined is credit risk, which influences the financial performance of the bank. This research is a quantitative study that applies panel data regression analysis to see impact of credit risk management on the financial performance The results of this study indicate that there is no influence related to the two Independent variables (NPL and LDR) on the Dependent variable. However, the results differ with the variable CAR, which has a negative impact on ROA. Based on the analysis conducted, the research on 30 conventional banking companies listed on the Indonesia Stock Exchange over a period of 5 years (2018-2022) concludes that the independent variables consisting of Non-Performing Loan, Capital Adequacy Ratio, and Loan Deposit Ratio do not affect the dependent variable, which is Return on Asset.
Oleh :
Richy Wijaya
