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Risks Management and Bank Performance: The Empirical Evidences from Indonesian Conventional and Islamic Banks

Author

Listed:
  • Saiful Saiful

    (Department of Accounting, Bengkulu University, Indonesia)

  • Dea Puspita Ayu

    (Department of Accounting, Bengkulu University, Indonesia)

Abstract

The purpose of this study is to examine the influence of credit, liquidity, and operational risk management on performance of Indonesian banks performance. The sample used consisted of 26 conventional banks and 11 sharia banks in period 2012-2016. This study found that credit, and liquidity risks management positively influence Indonesian banks performance that measured by return on asset (ROA) and return on equity (ROE). Meanwhile, this study also found operational risks management positively influence Indonesian banks performance that measured by ROA, ROE, and net interest margin.

Suggested Citation

  • Saiful Saiful & Dea Puspita Ayu, 2019. "Risks Management and Bank Performance: The Empirical Evidences from Indonesian Conventional and Islamic Banks," International Journal of Economics and Financial Issues, Econjournals, vol. 9(4), pages 90-94.
    • Handle: RePEc:eco:journ1:2019-04-10
    as

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    References listed on IDEAS

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    6. Marliana Abdullah & Shahida Shahimi & Abdul Ghafar Ismail, 2011. "Operational risk in Islamic banks: examination of issues," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 3(2), pages 131-151, June.
    7. Hussein A. Hassan Al-Tamimi & Faris Mohammed Al-Mazrooei, 2007. "Banks' risk management: a comparison study of UAE national and foreign banks," Journal of Risk Finance, Emerald Group Publishing, vol. 8(4), pages 394-409, August.
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    Cited by:

    1. Purwanto Purwanto & Isnain Bustaram & Subhan Subhan & Zef Risal, 2020. "The Effect of Good Corporate Governance on Financial Performance in Conventional and Islamic Banks: An Empirical Studies in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 10(3), pages 1-6.
    2. Nurtika Ekawati & Unggul Purwohedi & Ari Warokka, 2021. "The Influence of Risk Management, Third-Party Funds and Capital Structure on Banking Sector Financial Performance in Indonesia and Thailand with Corporate Governance as Moderating Variable in 2015-201," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 71-80, December.
    3. Safa Jallali & Faten Zoghlami, 2021. "The relevance of risk management for bank profitability: evidence from selected Islamic banks," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 20(2), pages 123-143.

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    More about this item

    Keywords

    Risk Management; Credit Risk Management; Liquidity Risk Management; Operational Risk Management and Bank Performance;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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