Bank Specific Factors that Affect Credit Risk


  • Yany Angreny Universitas Trisakti
  • Nabillah Ferozy Islamy Universitas Trisakti
  • Islamiaty Ruhlfie Puteri Universitas Trisakti


Credit Risk, Efficiency, Leverage, Liquidity, Ownership Concentration


Indonesian’s banking has taken steps to improve financial performance by managing credit risk and supporting economic recovery in 2023, efforts carried out by banks include providing credit and acting as intermediaries with very vulnerable credit risk challenges.This research has purpose to find out which bank spesific internal factor can significantly affect the credit risk in a bank. The independent variables in this study are efficiency, leverage, liquidity, ROA, ROE, solvency, banking spread, banking size, and ownership concentration. While the dependent variable is credit risk using NPL and Z-Score. The study used panel data regression models to test the data collected from 98 banks registered with OJK over three years (2020-2022). The results stated that leverage, ROA, ROE, solvency, bank size, have a positive influence on ZScore, while efficiency, liquidity, and bank spread have no influence on Zscore. The results also show that efficiency and ROA have a positive influence on NPL. Liquidity, ROE, solvency, bank spread, bank size, and ownership concentration variables have an influence on NPLs and leverage has no influence on NPL. Additionally, investors should be able to use this research's insights about company performance to get a general understanding of the credit risk associated with linked companies, which they can use to inform their investment decisions.


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How to Cite

Angreny, Y. ., Islamy, N. F. ., & Puteri, I. R. . (2024). Bank Specific Factors that Affect Credit Risk. Proceeding of the International Conference on Multidisciplinary Research for Sustainable Innovation, 1(1), 222–230. Retrieved from