DETERMINAN PROFITABILITAS PERBANKAN INDONESIA: ANALISIS RISIKO, EFISIENSI, DAN KECUKUPAN MODAL

Abstract

This study is motivated by the importance of financial stability in Indonesia's banking sector amid economic volatility. Its objective is to analyze the impact of credit risk, liquidity risk, operational efficiency, and capital adequacy on banking profitability. Employing a quantitative approach, the study utilizes a multiple linear regression analysis model on a sample of banks listed on the Indonesia Stock Exchange. Profitability is measured using the Net Interest Margin (NIM), while the independent variables are measured using the Non-Performing Loan (NPL), Loan to Deposit Ratio (LDR), Operating Expenses to Operating Income (BOPO), and Capital Adequacy Ratio (CAR).The results indicate that credit risk (NPL) and operational efficiency (BOPO) have a negative and significant effect on profitability (NIM), whereas liquidity risk (LDR) and capital adequacy (CAR) demonstrate a positive and significant effect on profitability (NIM). These findings suggest that to enhance profit margins, bank management must maintain strong capital adequacy and channel credit optimally, while simultaneously controlling operational costs and non-performing loans. This study has several limitations, including the low explanatory power of the independent variables on the Net Interest Margin (NIM) at 31.6%, the restricted scope limited to the banking subsector, and the necessity to eliminate 22 outlier data points. Consequently, future research is recommended to incorporate firm characteristic variables, broaden the sample scope to a wider financial sector, and apply more comprehensive analytical methods, such as panel data regression.

Keywords: Credit Risk, Liquidity Risk, Operational Efficiency, Capital Adequacy, and Profitability