The Effect Of Credit Risk, Liquidity Risk And Capital Adequacy On Bank Stability

Andika Ardianto Saputra, Najmudin Najmudin, Intan Shaferi


Banking financial institutions have a role as an accelerator of economic growth. Therefore, banks must have a stable condition so that the 2008 crisis does not happen again. One of the indicators that determines banking stability is capital and risk. The bank has a dynamic structure so that in its activities it is inseparable from potential risks such as credit risk and liquidity risk. If this risk is not managed properly, it could potentially lead to bank instability. Capital adequacy also plays a role in absorbing the losses received so that the bank can be stable. This study has a purpose to investigate the effects of credit risk, liquidity risk and capital adequacy on stability bank. The sample used in the study was 10 banks registered on OJK for the period 2019-2020. The sampling technique used purposive sampling. Data were collected and analyzed using descriptive statistics and multiple linear regression using the SPSS 25. The results of this study prove that simultaneously credit risk, liquidity risk and capital adequacy have an influence on bank stability. While partially the variables that have a significant effect are capital adequacy which has a positive effect, credit risk and liquidity have a negative effect on bank stability in Indonesia.

Keywords: Credit Risk, Liquidity Risk, Capital Adequacy, Bank Stability

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