Financial Risk and Performance of National Private Foreign Exchange Commercial Bank: Moderating Effects of Bank Size

Chintya Olivia, Apriani Dorkas Rambu Atahau, Samuel Martono


This study aims to analyze the effect of risk on financial performance and the moderating effect of bank size on the relationship between risk and financial performance. This study uses seven Foreign Exchange National Private Commercial Banks listed on the IDX 2015-2019 as the samples. The analytical method used is a panel data regression model with STATA 16.0 software. Empirical results show that liquidity and credit risk have no effect on financial performance. Market risk has a significant positive effect on financial performance while operational risk has a significant negative effect on financial performance. Bank size  moderate the effect of liquidity and credit risk on financial performance but failed to moderate the effect of market and operational risk on financial performance. These findings imply that national foreign exchange private commercial banks listed on the IDX for the 2015-2019 period should pay attention to the market and liquidity risks as those risks affect banks’ profitability, especially for large banks.


Liquidity Risk; credit risk; Market Risk; Operational risk; Bank Size

Full Text:



Alsyahrin, DP, Atahau, ADR, & Robiyanto. (2018). The Effect of Liquidity Risk, Financing Risk, and Operational Risk toward Indonesian Sharia Bank's Financing with Bank Size as a Moderating Variable. Journal of Economics, Business & Accountancy Ventures, 21(2), 241–249.

Attar, D., Islahuddin, & Shabri, M. (2014). The Effect of Risk Management Implementation on the Financial Performance of Banks Listed on the Indonesia Stock Exchange. Syiah Kuala University Postgraduate Accounting Journal, 3(1), 10–20.

Bank Indonesia. (2015). Bank Indonesia Regulation Number 17/24/2015 concerning Current Accounts at Bank Indonesia.

Bank Indonesia. (2018). Financial Stability Study (Issue 30).

Basuki, AT, & Prawoto, N. (2015). Analysis of the Composition of Public Expenditure on Economic Growth in Supporting Good Governance in Entering the MEA (Empirical Study of Provinces in Indonesia 2010-2014). In Book of Proceedings published by Universitas Negeri Padang (Issue c). Agus Tri Basuki%2C Nano Prawoto %28p.1-19%29_0.pdf

Bilian, F., & Purwanto. (2017). Analysis of the Effect of CAR, NIM, BOPO, and LDR on the Profitability of State-owned Banks. FIRM Journal of Management Studies, 2(1).

Damayanti, A., & Musadieq, M. Al. (2017). The Effect Of Financial Risk and Environmental Risk on Earnings (Case Study of PT Bank Tabungan Negara (Persero) Tbk Period 2006-2015). Journal of Business Administration, 46(1).

Dewi, NV, Mardani, RM, & Salim, MA (2017). The Influence of CAR, NPL, NIM and BOPO on Banking Profitability (Case Study on Commercial Banks Listed on the Indonesia Stock Exchange 2012-2015). Scientific Journal of Management Research, 6(1), 70–87.

Fahmi, I. (2013). Risk Management (Third). Alphabet.

Ghozali, I. (2013). Multivariate Analysis Application with IBM SPSS 21 Program.

Ghozali, I. (2018). Multivariate Analysis With IBM SPSS 25. Diponegoro University.

Herman, D. (2012). Banking management. Earth Literature.

Illiyah, Istanti, SLW, & Muniroh, H. (2017). Effect of Capital Adequacy Ratio, BOPO, Loan to Deposit Ratio, Third Party Funds and Non-Performing Loans on Profitability in Banking Companies Listed on the Indonesia Stock Exchange. Journal of Business Administration, 3(2).

Jekwam, JJ, & Hermuningsih, S. (2018). The Role of Company Size (Size) in Moderating Corporate Social Responsibility and Liquidity on Financial Performance in Mining Companies Listed on the IDX. Upajiwa Dewantara, 2(1), 76–85.

Friday. (2014). Financial Statement Analysis. Earth Literature.

Kansil, D., Murni, S., & Tulung, J. oy E. (2017). The Influence of Banking Risk on Financial Performance in 2013-2015 (Regional Development Banks in Indonesia). EMBA Journal: Journal of Economic Research, Management, Business And Accounting, 5(3), 3508–3517.

Korompis, RRN, Pure, S., & Untu, VN (2020). The Effect of Market Risk (Nim), Credit Risk (Npl), and Liquidity Risk (Ldr) on Banking Financial Performance (Roa) At Banks Registered In Lq 45 Period 2012-2018. EMBA Journal: Journal of Economic Research, Management, Business And Accounting, 8(1), 175–184.

Kumala, PAS, & Suryantini, NPS (2015). Effect of Capital Adequacy Ratio, Bank Size and BI Rate on Credit Risk (NPL) in Banking Companies. Unud Management E-Journal, 4(8), 2228–2242.

Kuncoro, M. (2013). Research Methods for Business and Economics (4th ed.). Erlangga.

Lestari, DY, Tristiarto, Y., & Siswantini, T. (2018). Determinant Factors of Profitability of Conventional Commercial Banks on the Indonesia Stock Exchange. Journal of Business And Management, 8(1), 421–432.

Lukitasari, YP, & Kartika, A. (2015). Analysis of the Effect of Third Party Funds, BOPO, CAR, LDR and NPL on Financial Performance in the Banking Sector Listed on the Indonesia Stock Exchange. Infokam Journal, 11(1), 28–39.

Lupiyoadi, R., & Ikhsan, RB (2015). Practicum of Business Research Methods. Salemba Four.

Maria, A. (2015). The Influence of Car, Bopo, Nim, Npl and Ldr on Roa: A Case Study of the 10 Best Banks in Indonesia. University of Surabaya Student Scientific Journal, 4(1), 1–19.

Ndoka, S., & Islami, M. (2016). The Impact of Credit Risk Management in the Profitability of Albanian Commercial Banks During the Period 2005-2015. European Journal of Sustainable Development, 5(3), 445–452.

Ningrum, USA (2017). The Effect of Bank Soundness Level Using the RGEC Method on Firm Value With Bank Size as a Moderating Variable (Empirical Study on Banking Companies Listed on the IDX for the Period 2013-2015). Journal of Accounting Management Economics, 25(44), 49–60.

Financial Fervices Authority. (2016). Financial Services Authority Regulation No. 18 / POJK.03 / 2016 concerning the Implementation of Risk Management for Commercial Banks.

Pinasti, WF, & Mustikawati, RI (2018). Effect of Car, Bopo, Npl, Nim and Ldr on Profitability of Commercial Banks for the 2011-2015 Period. Nominal Journal, 7(1).

Prasanjaya, AAY, & Ramantha, IW (2013). Analysis of the Effect of CAR, BOPO, LDR and Company Size Ratios on Profitability of Banks Listed on the IDX. Udayana University Accounting E-Journal, 4(1), 230–245.

Prasetyo, W. (2015). Analysis of Factors Affecting Banking Profitability. Journal of Economics and Development Studies, 7(1).

Priyatno, D. (2016). Learn Data Analysis Tools and Processing Methods with SPSS. Gava Media.

Raharjo, DPA, Setiaji, B., & Syamsudin. (2014). The Influence of CAR, NPL, LDR, BOPO, and NIM Ratios on the Performance of Commercial Banks in Indonesia. Journal of Resource Management Economics, 15(2), 7–12.

Rahmi, CL (2014). The Influence of Credit Risk, Liquidity Risk and Interest Rate Risk on Profitability (Empirical Study on Banking Companies Listed on the Indonesia Stock Exchange). Journal of Accounting, 2(3).

Rengasamy, D. (2014). Impact of loan deposit ratio (LDR) on profitability : Panel of evidence from commercial banks in Malaysia. Proceedings of the Third International Conference on Global Business, Economics, Finance and Social Sciences (GB14Mumbai Conference) Mumbai, India.

Richard, M. (2020). Assets of 5 Big Banks: BRI Still Champion, BCA Grows the Highest. Business Finance.

Stephani, R., Adenan, M., & Hanim, A. (2017). Analysis of the Effect of Financial Ratios on the Performance of Commercial Banks in Indonesia (Analysis of Financial Ratio Influence on the Commercial Bank in Indonesia). E-Journal of Business Economics and Accounting, 4(2), 192–195.

Syafi'i, M. (2015). Analysis of Factors Affecting Loan to Deposit Ratio (Study on the 10 Largest Banks in Indonesia for the 2014 Period). Scientific Journal of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, 3(1).

Ugur, A., & Erkus, H. (2010). Determinants of the Net Interest Margins of Banks in Turkey. Journal of Economic and Social Research, 12(2), 101–118.

Wati, PS, Mulyadi, J., & Rachbini, W. (2019). Determinants of Financial Performance With Size as Moderation. Journal of Economics, Management, And Business, 3(2), 257–268.

Widarjono, A. (2009). Econometrics: Introduction and Applications. Economics Faculty of Economics UII.

Widnyana, IW (2016). Effect of Capital Adequacy, Liquidity, Credit Risk and Efficiency on the Performance of State-Owned Banks Listed on the IDX. Journal of Management Science, 6(1).

Yulistiani, IGAR, & Suryantini, NPS (2016). The Effect of Cash Turnover, Capital Adequacy and Operational Risk on Profitability in Banking Companies in Indonesia. Udayana University Management E-Journal, 5(4), 2108–2136.

Yusriani. (2018). The Influence of CAR, NPL, BOPO and LDR on Profitability in State-Owned Commercial Banks (Persero) on the Indonesia Stock Exchange. Journal of Research Issue XXV, 4(002), 1–17.



  • There are currently no refbacks.

Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: +62 813-3180-1534

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0