Strategies to reduce credit risk and liquidity risk to increase bank profitability

Q1 Decision Sciences Uncertain Supply Chain Management Pub Date : 2023-01-01 DOI:10.5267/j.uscm.2023.6.015

I. Damayanthi, N.L.P. Wiagustini, I. W. Suartana, H. Rahyuda

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Abstract

The purpose of this study is to examine the effect of credit risk and liquidity risk on profitability with loan restructuring and income diversification as moderating variables. The research population is all general banking companies, which were listed on the Indonesia Stock Exchange (IDX) during the period 2018-2021. The research sample was created using the purposive sampling technique and 160 observations were obtained. This study conducts panel data regression analysis using EViews 12 software. The results of this study indicate that an increase in credit risk reduces profitability, liquidity risk does not affect profitability, a loan-restructuring strategy can reduce the effect of credit risk on profitability, and an income-diversification strategy can reduce the effect of liquidity risk on bank profitability. The research findings provide an understanding of banking strategy, namely loan restructuring and income diversification can increase banking profitability under urgent conditions. This study provides support for contingency theory and stakeholder theory. The limitation of this research is that it does not discuss Islamic banking because the policies of those companies are different in terms of rules and there are limited data.

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降低信贷风险和流动性风险以提高银行盈利能力的策略

本研究以贷款重组和收入多元化为调节变量，探讨信贷风险和流动性风险对盈利能力的影响。研究对象为2018-2021年期间在印度尼西亚证券交易所(IDX)上市的所有一般银行公司。研究样本采用目的性抽样技术，共获得160个观察值。本研究使用EViews 12软件对面板数据进行回归分析。本研究结果表明，信贷风险的增加降低了银行的盈利能力，流动性风险不影响盈利能力，贷款重组策略可以降低信贷风险对盈利能力的影响，收益多元化策略可以降低流动性风险对银行盈利能力的影响。研究结果提供了对银行策略的理解，即在紧急情况下，贷款重组和收入多样化可以提高银行的盈利能力。本研究为权变理论和利益相关者理论提供了支持。这项研究的局限性在于它没有讨论伊斯兰银行，因为这些公司的政策在规则方面是不同的，而且数据有限。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Uncertain Supply Chain Management Decision Sciences-Statistics, Probability and Uncertainty

CiteScore

5.60

自引率

0.00%

发文量

112

期刊介绍： Supply chain management (SCM) plays an essential role in managing the movement of raw materials into an organization, certain issues of the internal processing of materials into finished goods, and the movement of finished products out of the organization for end-consumer delivery. The goal of SCM is to improve trust and collaboration among supply chain partners and to improve inventory visibility. However, many SCM problems deal with uncertain events such as uncertainty in demand, supply, quality, price, etc. This forum is dedicated to all scholars who wish to share their ideas about uncertainty in SCM problems. Uncertain supply chain management is a quarterly publication dedicated to all scientists in all over the world who wish to share their experiences and knowledge in this field. Our policy is to perform a peer review on all submitted articles and publishes original and high quality articles.