Bank Risk Taking Behaviour and Performance: Evidence from Indonesian Bank

This study aim to assess the impact of risk management and internal control on Indonesian Banks' risk-taking behaviour and performance. By assessing sample of 60 Banks spanning from 2013 and 2022 using the Generalized Least Square random effect estimator model, results show that while risk management and internal control lower credit risk and operational risk, they have no significant impact on liquidity risk. This impact is more pronounced for Government owned Banks than for privately owned Banks. Furthermore, the research demonstrates that risk management and internal control improve Banks' performance particularly in ROA and ROE parameters.

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Publication Details

Journal
Dinasti International Journal of Economics Finance & Accounting
Published
2024-12-15
DOI
https://doi.org/10.38035/dijefa.v5i5.3571
Primary Topic
Islamic Finance and Banking Studies
Type
article
Field-Weighted Citation Impact
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article

Bank Risk Taking Behaviour and Performance: Evidence from Indonesian Bank

Dewi Hanggraeni, Vera Anita
Dinasti International Journal of Economics Finance & Accounting
Islamic Finance and Banking Studies
article

Bank Risk Taking Behaviour and Performance: Evidence from Indonesian Bank

Dewi Hanggraeni, Vera Anita
article en

Abstract

This study aim to assess the impact of risk management and internal control on Indonesian Banks' risk-taking behaviour and performance. By assessing sample of 60 Banks spanning from 2013 and 2022 using the Generalized Least Square random effect estimator model, results show that while risk management and internal control lower credit risk and operational risk, they have no significant impact on liquidity risk. This impact is more pronounced for Government owned Banks than for privately owned Banks. Furthermore, the research demonstrates that risk management and internal control improve Banks' performance particularly in ROA and ROE parameters.

Dinasti International Journal of Economics Finance & AccountingVol. 5(5)
Pertamina (Indonesia) (ID), University of Indonesia (ID), Universitas Pertamina
Openalex Percentile: Top 60%
Islamic Finance and Banking Studies
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