THE IMPACT OF LIQUIDITY RISK OPTIMIZATION ON STABILITY

Maria Lusiana Yulianti; Rosmiati Pakata; Nanok Fitriyadi. S

Authors

Maria Lusiana Yulianti Universitas Winaya Mukti
Rosmiati Pakata STIE Nusantara Sangatta
Nanok Fitriyadi. S STIE Nusantara Sangatta

Keywords:

Liquidity Risk, Credit Risk, Operational Efficiency, Bank Stability

Abstract

This research was conducted with the aim of knowing the effect of liquidity risk on bank stability with credit risk and operational efficiency as intervening variables for Islamic Commercial Banks in Indonesia for the 2012-2021 period. This study uses secondary data on the financial reports of Islamic commercial banks issued by the financial services authority (OJK) for the period 2012 to 2021. The sample was taken using a non-probability sampling technique, namely purposive sampling in order to obtain 10 Islamic commercial banks. The analysis technique is carried out by testing 6 (six) hypotheses. The results of this study indicate that liquidity risk can have a direct effect on bank stability, but there are also credit risk and operational efficiency variables play a role in mediating the relationship to the stability of the bank. Meanwhile, liquidity risk is not able to directly affect the operational efficiency of the bank.

Downloads

Download data is not yet available.

References

N. Djebali and K. Zaghdoudi, “Threshold effects of liquidity risk and credit risk on bank stability in the MENA region,” J. Policy Model., vol. 42, no. 5, pp. 1049–1063, 2020.

R. Rupeika-Apoga, I. Romānova, and S. Grima, “The Determinants of Bank’s Stability: Evidence from Latvia, a Small Post-Transition Economy,” in Contemporary Issues in Business Economics and Finance, Emerald Publishing Limited, 2020.

A. Ghenimi, H. Chaibi, and M. A. B. Omri, “The effects of liquidity risk and credit risk on bank stability: Evidence from the MENA region,” Borsa Istanbul Rev., vol. 17, no. 4, pp. 238–248, 2017.

A. Rashid, M. K. Hassan, and M. A. R. Shah, “On the role of Islamic and conventional banks in the monetary policy transmission in Malaysia: Do size and liquidity matter?,” Res. Int. Bus. Financ., vol. 52, p. 101123, 2020.

L. Lepetit and F. Strobel, “Bank insolvency risk and time-varying Z-score measures,” J. Int. Financ. Mark. Institutions Money, vol. 25, pp. 73–87, 2013.

F. Fauziah, A. Febriyanti, and N. H. Nisa, “Inklusi Keuangan dan Stabilitas Sistem Keuangan (Bank Z-Score) di Asia,” Optim. J. Ekon. dan Kewirausahaan, vol. 14, no. 1, pp. 30–47, 2020.

I. Ramlall, The banking sector under financial stability. Emerald Group Publishing, 2018.

P. Warjiyo, “Stabilitas sistem perbankan dan kebijakan moneter: keterkaitan dan perkembangannya di Indonesia,” Bul. Ekon. Monet. dan Perbank., vol. 8, no. 4, pp. 429–454, 2006.

M. Čihák and H. Hesse, “Islamic banks and financial stability: An empirical analysis,” J. Financ. Serv. Res., vol. 38, no. 2, pp. 95–113, 2010.

A. Syatiri and Y. Hamdaini, “Risiko Kredit, Stabilitas, dan Kebijakan Pembiayaan Bank Syariah di Indonesia,” J. Manaj. dan Bisnis Sriwij., vol. 15, no. 3, pp. 146–155, 2017.

L. Nugroho and N. Anisa, “PENGARUH MANAJEMEN BANK INDUK, KUALITAS ASET, DAN EFISIENSI TERHADAP STABILITAS BANK SYARIAH DI INDONESIA (PERIODE TAHUN 2013-2017),” Inovbiz J. Inov. Bisnis, vol. 6, no. 2, 2018, doi: 10.35314/inovbiz.v6i2.833.

N. Bello, A. Hasan, and B. Saiti, “The mitigation of liquidity risk in Islamic banking operations,” Banks Bank Syst., vol. 12, no. 3, p. 154, 2017.

B. Rosadi, M. Yusuf, A. Saepudin, and T. Asmala, “The Effect of Company Reputation and Customer Experience on Customer Loyal Behavior Citylink Indonesia,” vol. 5, no. 2, pp. 381–385, 2022.

A. Kurniawan, M. Yusuf, B. B. R. Manueke, N. Norvadewi, and A. Nurriqli, “IN TOKOPEDIA APPLICATIONS, THE EFFECT OF ELECTRONIC WORD OF MOUTH AND DIGITAL PAYMENT ON BUYING INTENTION,” J. Darma Agung, vol. 30, no. 3, pp. 272–286, 2022.

M. Yusuf, Z. A. Fitriyani, A. Abdilah, R. Ardianto, and A. Suhendar, “THE IMPACT OF USING TOKOPEDIA ON PROFITABILITY AND CONSUMER SERVICE,” J. Darma Agung, vol. 30, no. 2, pp. 559–573, 2022.

Rio Haribowo, I. Moridu, M. Rafid, K. Kamar, and M. Yusuf, “COMPARATIVE ANALYSIS OF INDONESIAN HOUSEHOLD CONSUMPTION EXPENDITURE 2018-2021 By,” J. Innov. Res. Knowl., vol. 2, no. 8.5.2017, pp. 2003–2005, 2022.

M. Ali, A. Sohail, L. Khan, and C.-H. Puah, “Exploring the role of risk and corruption on bank stability: evidence from Pakistan,” J. Money Laund. Control, 2019.

Y. Yuhasril, “The Effect of Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Operational Efficiency (BOPO), Net Interest Margin (NIM), and Loan to Deposit Ratio (LDR), on Return on Assets (ROA),” Res. J. Financ. Account., vol. 10, no. 10, pp. 166–176, 2019.

M. Yusuf and K. Aprianti, “Manajemen Sumber Daya Manusia di Dinas Tenaga Kerja dan Transmigrasi Kabupaten Bima: Dapatkah Meningkatkan Semangat Kerja Pegawai,” J. Ilm. Ekon. dan Bisnis, 2020, [Online]. Available: http://journal.unilak.ac.id/index.php/JIEB/article/view/3498

P. K. Ozili, “Banking stability determinants in Africa,” Int. J. Manag. Financ., vol. 14, no. 4, 2018, doi: 10.1108/IJMF-01-2018-0007.

M. Yusuf, A. Haryono, H. Hafid, N. A. Salim, and M. Efendi, “ANALYSIS OF COMPETENCE, LEADERSHIP STYLE, AND COMPENSATION IN THE BANDUNG CITY PASAR BERMARTABAT,” J. Darma Agung, vol. 30, no. 1, pp. 522–524, 2022.

T. A. Vasylieva, L. Y. Sysoieva, and A. V. Vysochyna, “Formalization of factors that are affecting stability of Ukraine banking system,” 2016.

S. I. M. AMIN, S. MOHAMAD, and M. E. SHAH, “Do cost efficiency affects liquidity risk in banking? Evidence from selected OIC countries (Adakah kos kecekapan mempengaruhi risiko kecairan dalam perbankan? Bukti dari negara-negara OIC terpilih),” J. Ekon. Malaysia, vol. 51, no. 2, pp. 55–71, 2017.

N. Akhter, “The impact of liquidity and profitability on operational efficiency of selected commercial banks in Bangladesh: A panel data study,” Glob. J. Manag. Bus. Res., 2018.

M. Safa, M. H. Ali, A. Ismail, I. M. Amin, M. H. Ali, and S. M. Nor, “Cost efficiency and liquidity risk in banking: New evidence from OIC countries,” Int. J. Bus. Manag. Sci., vol. 8, no. 2, pp. 255–276, 2018.

J. Lotto, “The empirical analysis of the impact of bank capital regulations on operating efficiency,” Int. J. Financ. Stud., vol. 6, no. 2, p. 34, 2018.

S. Polizzi, E. Scannella, and N. Suárez, “The Role of Capital and Liquidity in Bank Lending: Are Banks Safer?,” Glob. Policy, vol. 11, no. S1, 2020, doi: 10.1111/1758-5899.12750.

T. D. Warninda, I. A. Ekaputra, and R. Rokhim, “Do Mudarabah and Musharakah financing impact Islamic Bank credit risk differently?,” Res. Int. Bus. Financ., vol. 49, pp. 166–175, 2019.

T. Amara and M. Mabrouki, “The Impact of Liquidity and Credit Risks on the Bank Stability,” J. Smart Econ. Growth, vol. 4, no. 2, pp. 97–116, 2019.

K. Sari, “PENGARUH PEMBIAYAAN MURABAHAH, CAPITAL ADEQUACY RATIO (CAR), FINANCING TO DEPOSIT RATIO (FDR), DAN INFLASI TERHADAP PROFITABILITAS (ROA) DENGAN NON PERFORMING FINANCING (NPF) SEBAGAI VARIABEL INTERVENING PADA BANK UMUM SYARIAH (PERIODE 2013-2017) SKRIPSI.” IAIN SALATIGA, 2019.

N. Sunardi, “Pengaruh intellectual capital (ib-vaictm), fdr dan car terhadap efisiensi biaya dan implikasinya pada kinerja perusahaan bank umum syariah indonesia periode 2012-2016,” J. Sekuritas, vol. 1, no. 1, 2017.

D. A. Suryanto and S. Susanti, “Analisis Net Operating Margin (NOM), Non Performing Financing (NPF), Financing to Debt Ratio (FDR) dan Pengaruhnya Pada Efisiensi Perbankan Syariah di Indonesia,” J. Ris. Akunt. dan Keuang. Vol, vol. 8, no. 1, 2020.