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Factors that Affect Bank Risk in Commercial Banks that Are Publicly Listed

Author

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  • Cicilia Monica Agustina
  • Adler Haymans Manurung
  • Amran Manurung

Abstract

This study aims to determine the effect of Net Interest Margin (NIM), Non-Performing Loan (NPL), oil price, exchange rate, market power, and female BOD gender on bank risk in go public commercial banks listed on the IDX and KLSE (2009-2019). In this study, the sampling technique used was purposive sampling technique which resulted in 32 banks. The secondary data used is obtained from financial reports published on the official IDX and IDX websites. The data analysis method used in this research is panel data regression analysis. The results showed that the total assets variable affects NIM, NPL, Oil Prices, Exchange Rates, Market Power, and Female BOD Gender on Bank Risk in Go Public Commercial Banks listed on the IDX and KLSE. The regression test results can be concluded that the constant coefficient value of -0.770544 means that if the variable NIM (X1), NPL (X2), Exchange Rate (X3), Oil Price (X4), Market Power (X5), and Female BDO Gender (X6) is zero, then the amount of Bank Risk is -0.1770544. Â JEL classification numbers: C31, E51, G21, J16.

Suggested Citation

  • Cicilia Monica Agustina & Adler Haymans Manurung & Amran Manurung, 2023. "Factors that Affect Bank Risk in Commercial Banks that Are Publicly Listed," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 13(3), pages 1-2.
    • Handle: RePEc:spt:apfiba:v:13:y:2023:i:3:f:13_3_2
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    References listed on IDEAS

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    More about this item

    Keywords

    Bank; Profitability; Total Assets; Risk.;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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