The Influence of Credit Risk Management and Market Risk on Financial Performance in Banking Companies

Adawiah, Roudatul and Christya Rahayu, Heffi and -, Makmur (2025) The Influence of Credit Risk Management and Market Risk on Financial Performance in Banking Companies. The Influence of Credit Risk Management and Market Risk on Financial Performance in Banking Companies, 3 (1). pp. 46-55. ISSN 2987-6486

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Abstract

This study aims to analyze the influence of credit risk management and market risk on the financial performance of banking companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2023 period. A quantitative research method was applied using a purposive sampling technique, resulting in a sample of 19 banking companies. Secondary data were collected from official financial statements and analyzed using multiple linear regression, supported by F-tests, t-tests, and the coefficient of determination (R²). The findings reveal that credit risk has a negative and significant effect on financial performance, as indicated by a regression coefficient of -0.015 and a significance level below 0.05. Conversely, market risk shows a positive and significant effect, with a regression coefficient of 0.025 and a significance level below 0.05. These results suggest that higher credit risk reduces financial performance, while strategic responses to market fluctuations can enhance bank profitability. The study offers valuable insights for financial managers and regulators to improve risk management practices and ensure banking sector stability amid global economic uncertainties.

Item Type:	Article
Subjects:	Dewey decimal Classification Subject Areas > 300 Ilmu Sosial > 330 - 339 Ilmu Ekonomi
Divisions:	Fakultas Ekonomi > Program Studi Manajemen
Depositing User:	Dr. Heffi Christya Rahayu, SE., M.Si.
Date Deposited:	30 Jun 2025 04:25
Last Modified:	30 Jun 2025 04:25
URI:	http://repository.upp.ac.id/id/eprint/2560

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