Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)

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Determinants of Bank Business Risk According to Risk Based Approach

Authors
K. Haryakusuma
Corresponding Author
K. Haryakusuma
Available Online 7 February 2020.
DOI
10.2991/aebmr.k.200131.023How to use a DOI?
Keywords
credit risk, interest rate risk, earnings
Abstract

Banks have important role on the economy of Indonesia. With a fully regulated principle, Banking Sectors in Indonesia concern to keep in a good performance according to Bank Indonesia Regulation No. 13 / 1 / PBI / 2011 which emphasize on risk-based approach. Therefore, this paper aims to examine the factors affecting commercial banks business risk listed on Indonesia Stock Exchange. Those factors consist of risk profile (credit risk, liquidity risk, and interest rate risk), good corporate governance, earnings, and capital. The samples used in this research are 26 commercial banks listed on Indonesia Stock Exchange during research period since 2011 to 2013. This research uses multiple linear regression analysis. The result of the findings shows that credit risk has effect against business risk, while liquidity risk does not have effect against it. The rate of interest risk has effect against business risk. Good corporate governance does not have effect against business risk. Earnings have significant effect against business risk. Capital does not have effect against business risk. Hence, the implication of the research is that commercial banks business risk is affected by three factors of risk-based bank rating (credit risk, interest rate risk, and earnings).

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
7 February 2020
ISBN
978-94-6252-897-0
ISSN
2352-5428
DOI
10.2991/aebmr.k.200131.023How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - K. Haryakusuma
PY  - 2020
DA  - 2020/02/07
TI  - Determinants of Bank Business Risk According to Risk Based Approach
BT  - Proceedings of the 3rd Global Conference On Business, Management, and Entrepreneurship (GCBME 2018)
PB  - Atlantis Press
SP  - 106
EP  - 112
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200131.023
DO  - 10.2991/aebmr.k.200131.023
ID  - Haryakusuma2020
ER  -