INTEGRATION OF ERROR CORRECTION MODEL IN TESTING THE INTERACTION EFFECT OF CREDIT GROWTH AND BANKING RISK MANAGEMENT IN INDONESIA
Keywords:
Financial risk management, Bank performance, Credit growth
Abstract
This study explores the impact of market risk, operational risk, liquidity risk, and solvency risk, while also investigating the moderating effect of credit growth on bank performance. The Error Correction Model-Eagle Granger (ECM-EG) methodology was applied to data from 2014 to 2023. Findings indicate that, in the short term, market and operational risks significantly impact bank performance. In the long term, only solvency risk does not significantly affect bank performance. Additionally, credit growth moderates the relationship between market and liquidity risks and bank performance in the short term, while in the long term, it only moderates the relationship between market risk and bank performance. Our empirical findings demonstrate that effective risk management enhances bank performance. This research provides valuable insights for policymakers, researchers, and academics in fostering a conducive environment for corporate activities.
References
Ahmed, A. (2018). Interest Rate and Financial Performance of Banks in Pakistan. International Journal of Applied Economics, Finance and Accounting, 2(1), 1–7. https://doi.org/10.33094/8.2017.2018.21.1.7
Al Rasyid, H., & Sazly, S. (2021). Pengaruh Penerapan Manajemen Risiko Terhadap Kinerja Keuangan Triwulan 2016 – 2020 Pada Bank Pembangunan Daerah Jawa Timur. Owner, 5(2), 283–294. https://doi.org/10.33395/owner.v5i2.432
Ali, S., Simboh, B., & Rahmawati, U. (2023). Determining Factors of Peer-to-Peer (P2P) Lending Avoidance: Empirical Evidence from Indonesia. Gadjah Mada International Journal of Business, 25(1), 1–27. https://doi.org/10.22146/gamaijb.68805
Ardiyani, N. K. W., & Yadnyana, I. K. (2023). Jumlah Kredit dan Suku Bunga terhadap Profitabilitas dengan Kualitas Kredit sebagai Pemoderasi. E-Jurnal Akuntansi, 33(1), 170. https://doi.org/10.24843/eja.2023.v33.i01.p13
Baasalem, F. (2021). Analisis Risiko Likuiditas Dan Risiko Solvabilitas Untuk Melihat Kondisi Keuangan Bank Pada Pt. Bank Pengkreditan Rakyat Papua Mandiri Makmur. Jurnal Ekonomi Dan Bisnis, 7(2), 30–38. https://doi.org/10.55049/jeb.v7i2.28
Bikker, J. A., & Vervliet, T. M. (2018). Bank profitability and risk-taking under low interest rates. International Journal of Finance and Economics, 23(1), 3–18. https://doi.org/10.1002/ijfe.1595
Brigham dan Houston. (2019). Dasar-Dasar Manajemen Keuangan Buku 2 Edisi 14. Salemba Empat.
Budhiarjo, I. S., Nurfitriana, N., Dewi, W. C., Nurcahayati, S., & Cay, S. (2022). The Effect of Debt To Assets Ratio (DAR) and Debt To Equity Ratio (DER) on Return On Assets (ROA) at PT Phapros Tbk. Jurnal Ad’ministrare, 9(2), 721. https://doi.org/10.26858/ja.v9i2.42930
Cecchetti, S. G., & Kharroubi, E. (2018). WHY DOES CREDIT GROWTH CROWD OUT REAL ECONOMIC GROWTH?
Daulay, Z. R., Nirmalasari, Handayani, C., Sondang, & Astuti, Y. A. (2023). the Analysis of Financial Management Using the Bopo Ratio in Pamsimas Program in Ujung Kubu Village, Nibung District, Batubara Regency (Time: January To August 2021). Ekonomi, 12(1), 154–159. https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/942
Dwitanto, A. R., Manurung, A. H., & Machdar, N. M. (2023). Determinants of Net Interest Margin in Indonesian Banking Industry: The Moderating Role of Central Bank Interest Rate. Journal of Business, Management, and Social Studies, 3(2), 66–78. https://doi.org/10.53748/jbms.v3i2.59
Harsono, K. (2021). Analisis Faktor-faktor Profitabilitas Bank. 10(2), 278–292.
Horobet, A., Curea, S. C., Smedoiu Popoviciu, A., Botoroga, C. A., Belascu, L., & Dumitrescu, D. G. (2021). Solvency Risk and Corporate Performance: A Case Study on European Retailers. Journal of Risk and Financial Management, 14(11). https://doi.org/10.3390/jrfm14110536
Hussain, S., & Rasheed, A. (2022). Impact of capital adequacy, liquidity management and credit risk management on economic performance: Evidence from Pakistan. Journal of Social Sciences and Management Studies, 1(4), 44–56. https://doi.org/10.56556/jssms.v1i4.346
Iklin, M. (2023). Pengaruh CAR, NPL, BOPO Dan LDR terhadap Retrun on Assets pada Bank Pembangunan Daerah: Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah, 6(1), 360–379. https://doi.org/10.47467/alkharaj.v6i1.2689
Jayanti, E. D., & Sartika, F. (2021). Pengaruh kecukupan modal dan penyaluran kredit terhadap profitabilitas dengan risiko kredit sebagai variabel moderasi. Akuntabel, 18(4), 713–721. https://doi.org/10.30872/jakt.v18i4.10481
Lestari, W. D., & Setianegara, R. G. (2020). ANALISIS PENGARUH NIM, BOPO, LDR, DAN NPL TERHADAP PROFITABILITAS (Studi Kasus Pada Bank Umum Yang Listed Di Bursa Efek Indonesia Periode 2014-2018). Keunis, 8(1), 82. https://doi.org/10.32497/keunis.v8i1.2136
Malini, H., & Widayatmoko, A. (2021). Pengaruh Modal, Likuiditas, Kredit, dan Efisiensi Biaya Terhadap Profitabilitas Industri Perbankan Indonesia. Cakrawala Management Business Journal, 4(1). https://doi.org/10.30862/cm-bj.v4i1.122
Malini, H., & Yulindisti, E. (2022). The Influence of Financial and Non-Financial Company Factors on the Stock Prices of Indonesian Banking Sector Firms. Prosiding Seminar Nasional Seminar Akademik Tahunan Ilmu Ekonomi Dan Studi Pembangunan, 5, 2022.
Murtini, Purnama, E. D., & Lumbantobing, R. (2023). The effect of non-performance loan (npl) mediation and interest rate moderation on the effect of capital adequacy ratio ( car ) and bopo on return on assets ( roa ) in consumer finance companies listed on the idx for 2019-2021. Enrichment : Journal of Management, 12(6), 5333–5346.
Otoritas Jasa Keuangan Indonesia. (2016). PJOK No 18/POJK.03/2016. Otoritas Jasa Keuangan, 1–29. http://www.ojk.go.id/id/kanal/iknb/regulasi/lembaga-keuangan-mikro/peraturan-ojk/Documents/SAL-POJK PERIZINAN FINAL F.pdf
Otoritas Jasa Keuangan Indonesia. (2022). Statistik Perbankan Indonesia - Desember 2022. 21 No.1.
Putra, I. K. S., & Hasibuan, H. T. (2021). Faktor - Faktor yang Mempengaruhi Kinerja Keuangan Bank Perkreditan Rakyat. E-Jurnal Akuntansi, 31(9), 2229. https://doi.org/10.24843/eja.2021.v31.i09.p06
Putri, B. M., & Wibisono, H. (2022). Financial Technology in Indonesia: Effect of Risk on Financial Performance in Peer-To-Peer Lending. Kinerja, 26(2), 270–288. https://doi.org/10.24002/kinerja.v26i2.6185
Rafinur, A., Arditha, A., & Rusmianto, R. (2023). Pengaruh CAR, LDR, BOPO dan NPL terhadap ROA pada Sektor Perbankan di Bursa Efek Indonesia Periode 2018-2019. Jurnal Ilmiah ESAI, 17(1), 40–56. https://doi.org/10.25181/esai.v17i1.2630
Rahma Dewi, W. (2021). Management of Risk Management on Banking Financial Performance. Jurnal Keuangan Dan Perbankan (KEBAN), 1(1), 52–64. https://doi.org/10.30656/jkk.v1i1.3999
Rotinsulu, C. N. M., Anantadjaya, S. P. D., & ... (2023). The Effect Of Financial Performance On Profit Changes Before Tax In The Banking Sub-Sector Listed On The Indonesia Stock Exchange. Jurnal …, 12(02), 442–451. https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/1688%0Ahttps://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/download/1688/1335
Saleem, M., & Masood, O. (2023). Credit Risk Management Can Gear Up Bank Performance – Moderating Effect of Interest Rate in Developed Countries. IRASD Journal of Economics, 5(1), 720–738. https://doi.org/10.52131/joe.2023.0501.0111
Sumantyo, R.-, & Sutanto, S.-. (2019). Analisis Pengaruh Fundamental Ekonomi Makro Dan Sentimen Global Terhadap Perkembangan Credit Default Swap Di Indonesia. EKUITAS (Jurnal Ekonomi Dan Keuangan), 3(1), 27–47. https://doi.org/10.24034/j25485024.y2019.v3.i1.4077
Wijayanti, E., & Yuliana, I. (2020). Risk Profile, Secure Bond, and Bond Rating in Banking Industry. The Winners, 21(1), 49. https://doi.org/10.21512/tw.v21i1.6136
Yulianingsih, T., Listiana, E., Malini, H., Wendy, & Giriati. (2024). The Effect of Risk Profile, Profitability, and Capital on Profit Growth of Indonesian Digital Banks. Ilomata International Journal of Management, 5(1), 1–22. https://doi.org/10.52728/ijjm.v5i1.981
Zikri, S. A., Tamara, D. A. D., Mai, M. U., & Nurdin, A. A. (2023). Analisis Pengaruh CAR, NPF, BOPO, dan FDR terhadap ROA (Studi Kasus PT. Bank Muamalat Indonesia Tbk.). Journal of Applied Islamic Economics and Finance, 3(2), 286–301. https://doi.org/10.35313/jaief.v3i2.3756
Zulkarnaen, W., Fitriani, I., & Yuningsih, N. (2020). Pengembangan Supply Chain Management Dalam Pengelolaan Distribusi Logistik Pemilu Yang Lebih Tepat Jenis, Tepat Jumlah Dan Tepat Waktu Berbasis Human Resources Competency Development Di KPU Jawa Barat. Jurnal Ilmiah MEA (Manajemen, Ekonomi, & Akuntansi), 4(2), 222-243. https://doi.org/10.31955/mea.vol4.iss2.pp222-243.
Al Rasyid, H., & Sazly, S. (2021). Pengaruh Penerapan Manajemen Risiko Terhadap Kinerja Keuangan Triwulan 2016 – 2020 Pada Bank Pembangunan Daerah Jawa Timur. Owner, 5(2), 283–294. https://doi.org/10.33395/owner.v5i2.432
Ali, S., Simboh, B., & Rahmawati, U. (2023). Determining Factors of Peer-to-Peer (P2P) Lending Avoidance: Empirical Evidence from Indonesia. Gadjah Mada International Journal of Business, 25(1), 1–27. https://doi.org/10.22146/gamaijb.68805
Ardiyani, N. K. W., & Yadnyana, I. K. (2023). Jumlah Kredit dan Suku Bunga terhadap Profitabilitas dengan Kualitas Kredit sebagai Pemoderasi. E-Jurnal Akuntansi, 33(1), 170. https://doi.org/10.24843/eja.2023.v33.i01.p13
Baasalem, F. (2021). Analisis Risiko Likuiditas Dan Risiko Solvabilitas Untuk Melihat Kondisi Keuangan Bank Pada Pt. Bank Pengkreditan Rakyat Papua Mandiri Makmur. Jurnal Ekonomi Dan Bisnis, 7(2), 30–38. https://doi.org/10.55049/jeb.v7i2.28
Bikker, J. A., & Vervliet, T. M. (2018). Bank profitability and risk-taking under low interest rates. International Journal of Finance and Economics, 23(1), 3–18. https://doi.org/10.1002/ijfe.1595
Brigham dan Houston. (2019). Dasar-Dasar Manajemen Keuangan Buku 2 Edisi 14. Salemba Empat.
Budhiarjo, I. S., Nurfitriana, N., Dewi, W. C., Nurcahayati, S., & Cay, S. (2022). The Effect of Debt To Assets Ratio (DAR) and Debt To Equity Ratio (DER) on Return On Assets (ROA) at PT Phapros Tbk. Jurnal Ad’ministrare, 9(2), 721. https://doi.org/10.26858/ja.v9i2.42930
Cecchetti, S. G., & Kharroubi, E. (2018). WHY DOES CREDIT GROWTH CROWD OUT REAL ECONOMIC GROWTH?
Daulay, Z. R., Nirmalasari, Handayani, C., Sondang, & Astuti, Y. A. (2023). the Analysis of Financial Management Using the Bopo Ratio in Pamsimas Program in Ujung Kubu Village, Nibung District, Batubara Regency (Time: January To August 2021). Ekonomi, 12(1), 154–159. https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/942
Dwitanto, A. R., Manurung, A. H., & Machdar, N. M. (2023). Determinants of Net Interest Margin in Indonesian Banking Industry: The Moderating Role of Central Bank Interest Rate. Journal of Business, Management, and Social Studies, 3(2), 66–78. https://doi.org/10.53748/jbms.v3i2.59
Harsono, K. (2021). Analisis Faktor-faktor Profitabilitas Bank. 10(2), 278–292.
Horobet, A., Curea, S. C., Smedoiu Popoviciu, A., Botoroga, C. A., Belascu, L., & Dumitrescu, D. G. (2021). Solvency Risk and Corporate Performance: A Case Study on European Retailers. Journal of Risk and Financial Management, 14(11). https://doi.org/10.3390/jrfm14110536
Hussain, S., & Rasheed, A. (2022). Impact of capital adequacy, liquidity management and credit risk management on economic performance: Evidence from Pakistan. Journal of Social Sciences and Management Studies, 1(4), 44–56. https://doi.org/10.56556/jssms.v1i4.346
Iklin, M. (2023). Pengaruh CAR, NPL, BOPO Dan LDR terhadap Retrun on Assets pada Bank Pembangunan Daerah: Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah, 6(1), 360–379. https://doi.org/10.47467/alkharaj.v6i1.2689
Jayanti, E. D., & Sartika, F. (2021). Pengaruh kecukupan modal dan penyaluran kredit terhadap profitabilitas dengan risiko kredit sebagai variabel moderasi. Akuntabel, 18(4), 713–721. https://doi.org/10.30872/jakt.v18i4.10481
Lestari, W. D., & Setianegara, R. G. (2020). ANALISIS PENGARUH NIM, BOPO, LDR, DAN NPL TERHADAP PROFITABILITAS (Studi Kasus Pada Bank Umum Yang Listed Di Bursa Efek Indonesia Periode 2014-2018). Keunis, 8(1), 82. https://doi.org/10.32497/keunis.v8i1.2136
Malini, H., & Widayatmoko, A. (2021). Pengaruh Modal, Likuiditas, Kredit, dan Efisiensi Biaya Terhadap Profitabilitas Industri Perbankan Indonesia. Cakrawala Management Business Journal, 4(1). https://doi.org/10.30862/cm-bj.v4i1.122
Malini, H., & Yulindisti, E. (2022). The Influence of Financial and Non-Financial Company Factors on the Stock Prices of Indonesian Banking Sector Firms. Prosiding Seminar Nasional Seminar Akademik Tahunan Ilmu Ekonomi Dan Studi Pembangunan, 5, 2022.
Murtini, Purnama, E. D., & Lumbantobing, R. (2023). The effect of non-performance loan (npl) mediation and interest rate moderation on the effect of capital adequacy ratio ( car ) and bopo on return on assets ( roa ) in consumer finance companies listed on the idx for 2019-2021. Enrichment : Journal of Management, 12(6), 5333–5346.
Otoritas Jasa Keuangan Indonesia. (2016). PJOK No 18/POJK.03/2016. Otoritas Jasa Keuangan, 1–29. http://www.ojk.go.id/id/kanal/iknb/regulasi/lembaga-keuangan-mikro/peraturan-ojk/Documents/SAL-POJK PERIZINAN FINAL F.pdf
Otoritas Jasa Keuangan Indonesia. (2022). Statistik Perbankan Indonesia - Desember 2022. 21 No.1.
Putra, I. K. S., & Hasibuan, H. T. (2021). Faktor - Faktor yang Mempengaruhi Kinerja Keuangan Bank Perkreditan Rakyat. E-Jurnal Akuntansi, 31(9), 2229. https://doi.org/10.24843/eja.2021.v31.i09.p06
Putri, B. M., & Wibisono, H. (2022). Financial Technology in Indonesia: Effect of Risk on Financial Performance in Peer-To-Peer Lending. Kinerja, 26(2), 270–288. https://doi.org/10.24002/kinerja.v26i2.6185
Rafinur, A., Arditha, A., & Rusmianto, R. (2023). Pengaruh CAR, LDR, BOPO dan NPL terhadap ROA pada Sektor Perbankan di Bursa Efek Indonesia Periode 2018-2019. Jurnal Ilmiah ESAI, 17(1), 40–56. https://doi.org/10.25181/esai.v17i1.2630
Rahma Dewi, W. (2021). Management of Risk Management on Banking Financial Performance. Jurnal Keuangan Dan Perbankan (KEBAN), 1(1), 52–64. https://doi.org/10.30656/jkk.v1i1.3999
Rotinsulu, C. N. M., Anantadjaya, S. P. D., & ... (2023). The Effect Of Financial Performance On Profit Changes Before Tax In The Banking Sub-Sector Listed On The Indonesia Stock Exchange. Jurnal …, 12(02), 442–451. https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/1688%0Ahttps://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/download/1688/1335
Saleem, M., & Masood, O. (2023). Credit Risk Management Can Gear Up Bank Performance – Moderating Effect of Interest Rate in Developed Countries. IRASD Journal of Economics, 5(1), 720–738. https://doi.org/10.52131/joe.2023.0501.0111
Sumantyo, R.-, & Sutanto, S.-. (2019). Analisis Pengaruh Fundamental Ekonomi Makro Dan Sentimen Global Terhadap Perkembangan Credit Default Swap Di Indonesia. EKUITAS (Jurnal Ekonomi Dan Keuangan), 3(1), 27–47. https://doi.org/10.24034/j25485024.y2019.v3.i1.4077
Wijayanti, E., & Yuliana, I. (2020). Risk Profile, Secure Bond, and Bond Rating in Banking Industry. The Winners, 21(1), 49. https://doi.org/10.21512/tw.v21i1.6136
Yulianingsih, T., Listiana, E., Malini, H., Wendy, & Giriati. (2024). The Effect of Risk Profile, Profitability, and Capital on Profit Growth of Indonesian Digital Banks. Ilomata International Journal of Management, 5(1), 1–22. https://doi.org/10.52728/ijjm.v5i1.981
Zikri, S. A., Tamara, D. A. D., Mai, M. U., & Nurdin, A. A. (2023). Analisis Pengaruh CAR, NPF, BOPO, dan FDR terhadap ROA (Studi Kasus PT. Bank Muamalat Indonesia Tbk.). Journal of Applied Islamic Economics and Finance, 3(2), 286–301. https://doi.org/10.35313/jaief.v3i2.3756
Zulkarnaen, W., Fitriani, I., & Yuningsih, N. (2020). Pengembangan Supply Chain Management Dalam Pengelolaan Distribusi Logistik Pemilu Yang Lebih Tepat Jenis, Tepat Jumlah Dan Tepat Waktu Berbasis Human Resources Competency Development Di KPU Jawa Barat. Jurnal Ilmiah MEA (Manajemen, Ekonomi, & Akuntansi), 4(2), 222-243. https://doi.org/10.31955/mea.vol4.iss2.pp222-243.
Published
2025-01-10
How to Cite
Wahyuni, A., Giriati, G., Wendy, W., Mustaruddin, M., & Mustika, U. (2025). INTEGRATION OF ERROR CORRECTION MODEL IN TESTING THE INTERACTION EFFECT OF CREDIT GROWTH AND BANKING RISK MANAGEMENT IN INDONESIA. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 9(1), 159-171. https://doi.org/10.31955/mea.v9i1.4994
Section
Articles
Copyright (c) 2025 Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
