Keywords
Capital Adequacy
Financial Performance
How to Cite
Abstract
The aim of this research is to prove empirically the influence of financial risk and capital adequacy on the financial performance of conventional and sharia commercial banks in Indonesia for the 2019-2022 period. Financial risk consists of liquidity risk, credit risk, market risk and operational risk. This research uses quantitative methods, where secondary data is obtained from banking financial reports registered with the Financial Services Authority (OJK) in the 2019-2022 period. The data collection method in this research uses purposive sampling techniques or with certain criteria. This research used the panel data analysis method with a sample size of 103 banks and obtained 412 data. The research data was then processed using EViews version 12. The research results prove that market risk and operational risk influence financial performance. Different results prove that liquidity risk, credit risk and capital adequacy have no effect on financial performance. This research has implications for developing more effective risk management strategies and optimizing financial performance in commercial banking.
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