Analysis of Risk Management Implementation on the Financial Performance of the Regional Development Bank of West Java and Banten (Bank BJB)

This study aims to analyze the Implementation of Risk Management Against Bad Credit Risk in Consumer & Retail Products of PT. Bank Pembangunan Daerah Jawa Barat and Banten Tbk (2020-2022 with a Descriptive approach. The data collection technique used in this research is documentation technique. through the collection of information sourced from financial reports from 2020 to 2022 at PT. Regional Development Bank of West Java and Banten. Based on this analysis, it can be seen that PT. Regional Development Bank of West Java and Banten controls risks, among others, by increasing capital, maintaining stability between lending and bad debts, and technical mitigation of lending risks. PT Bank Pembangunan Daerah Jawa Barat and Banten has approved a Risk Management policy which includes a Risk Management strategy and framework that is determined in accordance with the level of risk to be taken (risk appetite) and risk tolerance of the Bank. Non Performing Loan (NPL) at PT Bank Pembangunan Daerah Jawa Barat and Banten from 2020 to 2022 on average has decreased. Overall, the NPL of PT Bank Pembangunan Daerah Jawa Barat and Banten can still be categorized into the condition of a bank that has a healthy Non Performing Loan (NPL), which does not exceed 5% in accordance with Bank Indonesia. This is because the implementation of risk management that is applied has been running in accordance with the provisions so as to minimize the risk of non-performing loans so that PT. Bank Pembangunan Daerah Jawa Barat and Banten can continue to maintain its status as a healthy bank.

This research aims to examine the influence of Capital Education Ratio (CAR), Non-Performing Loans (NPL), and Net Interest Margin (NIM) on Return on Assets (ROA) at PT Bank Pembangunan Daerah Kalimantan Selatan either partially or simultaneously. The sample in this research is the financial report of PT Bank Pembangunan Daerah Kalimantan Selatan for the 2015-2022 period. Data collection uses financial reports while data analysis uses Multiple Linear Regression Analysis via the SPSS version 23 program. The test results prove that the Capital Education Ratio (CAR) has an insignificant effect on Return on Assets (ROA), Non Performing Loans (NPL) has a significant effect on Return on Assets (ROA), an insignificant effect on Return on Assets (ROA), while simultaneously Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), and Net Interest Margin (NIM) have an influence on Return on Assets (ROA) at PT Bank Pembangunan Daerah Kalimantan Selatan

The purpose of this study is to analyze the implementation of competitive advantage in equity participation in PT Bank Pembangunan Daerah for the period of October 2020 which is still in the category of Commercial Banks Based on Business Activities 1. Specifically, this research also tries to build the best implementation model for regional capital participation to PT Bank Pembangunan Daerah which is integrated with the planning and budgeting system and integrated with regional development priorities. We operate qualitative method which aims to get the real picture by developing a process analysis using direct data sources from informants totaling 27 people with very competent status in the field of regional capital participation at PT Bank Pembangunan Daerah Bengkulu Province and Central Sulawesi Province. Creswell (2009) states that the research process involves questions and procedures that arise, data that is usually collected in a participant setting, data analysis that is constructed inductively from specific to general themes. The results of the study explain that competitive advantage is seen from the substance of the low cost strategy of 25 (twenty five) Regional General Treasurers as Regional Financial Management Officers, there are 20 (twenty) Regional General Treasurers as Regional Financial Management Officers stating that the implementation of competitive advantage is seen from the substance the low-cost strategy is still not optimal (80% of informants), and 5 (five) Regional General Treasurers as Regional Financial Management Officers explain that currently there is no implementation of the low-cost strategy in the series of processes for capital participation in the work area carried out by PT Bank Pembangunan Daerah Bengkulu and in the work area of PT Bank Pembangunan Daerah Sulawesi Tengah (20% Informants). The best implementation model to build the integration of the provincial/district/city government capital participation system into PT Bank Pembangunan Daerah in an optimal and regulatory manner with operations is: Phase 1, capital participation management is integrated with regional regulations on RPJMD, Restra SKPD documents, and RKPD documents. Stage 2, the management of equity participation is implemented in regional regulations concerning APBD, then realized and evaluated in the general meeting of shareholders and/or other coordination meetings.

This study aims to analyze the effect of Non-Performing Loan (NPL) and Loan to Deposit Ratio (LDR) on Return on Assets (ROA) in PT Bank Pembangunan Daerah Papua. The analysis method used is multiple linear regression. The results of the analysis show that partially, NPLs have a negative and significant effect on ROA, which means that the higher the level of non-performing loans, the lower the bank's profitability level. Meanwhile, LDR had a positive but insignificant effect on ROA, indicating that although increasing LDR may increase profitability, the effect is not strong enough to significantly affect ROA. However, simultaneously, the NPL and LDR variables had a positive and significant effect on ROA, which suggests that the two variables, when considered together, can make a significant contribution to the bank's financial performance.

Bank health is the bank's ability to regularly carry out banking activities and fulfill its responsibilities in accordance with Bank Indonesia Regulation No. 13/1/PBI/2011. To assess the health of the bank using the Risk profile, Good Corporate Governance, Earnings, and Capital (RGEC) method which uses measurements of non-performing loans (NPL), loan to deposit ratio (LDR), Good Corporate Governance (GCG), return on assets (ROA), return on equity (ROE), operating expenses to operating income, and capital adequacy ratio (CAR). This research uses a quantitative descriptive approach, this study uses a causal design or causal relationship. To determine the soundness level of a bank, there is a matrix of determining criteria for each variable. The criteria for this determination are based on Bank Indonesia Circular No. 13/24/DPNP of 2011. The data source for this study uses conventional banking secondary data at banks listed on the Indonesia Stock Exchange for the 2019-2021 period. The sample was determined as many as 78 observations. From the results of the research that has been done, it can be concluded that there are banks that have conditions of "Very Healthy, Healthy, Fairly Healthy and Less Healthy". Banks that have "Unhealthy" conditions, namely PT Bank Ganesha Tbk (BGTG) in 2021. There are 6 banks that have "Quite Healthy" conditions which include PT Bank Amar Indonesia Tbk (AMAR) in 2020 and 2021, PT Bank MNC Internasional Tbk (BABP) in 2019 and 2020, PT Bank Tabungan Negara Tbk (BBTN) in 2019, PT Bank Ganesha Tbk (BGTG) in 2020, PT Bank Ina Perdana Tbk (BINA) in 2019 to 2021, PT Bank Pembangunan Daerah Jawa Timur Tbk (BJTM) in 2021. Only PT Bank OCBC NISP Tbk has a "Very Healthy" condition in 2020. While the rest are banks with a "Healthy" condition

Prior Bangladeshi studies on the relationship between credit risk management and the financial performance of listed banks suffered from a dynamic endogeneity bias, which led to misleading conclusions. As a result, this study examines the impact of credit risk management on the financial performance of banks listed on the Dhaka Stock Exchange for the period from 2011 to 2018. The equity multiplier ratio (EMR), capital adequacy ratio (CAR), non-performing loan (NPL) ratio, interest coverage ratio (ICR), and provision for credit losses to total credit (PCLTC) are proxies for credit risk management. The study characterizes banks' financial performance from three perspectives: bank management, as indicated by return on equity (ROE); the market, as indicated by Tobin's Q (TQ); and shareholder value, as indicated by economic value added (EVA-ln). The study sample comprises 29 of the 30 listed banks, and the two-step system generalized method of moments (GMM) model is used to test the hypotheses. This study finds mixed results, i.e., none of the credit risk variables used in this study, with the exception of ICR, affect the sampled banks' performance equally from each of the three perspectives. Particularly, the results show that ICR has a significant positive impact on all measures of banks' financial performance, whereas PCLTC has no impact on any measure of financial performance. The EMR has a significant positive impact on ROE but does not affect TQ and EVA-ln. CAR has been shown to improve ROE and TQ while having an insignificant effect on EVA-ln. The NPL ratio has a negative effect on ROE but does not affect TQ and EVA-ln.

This study aims to analyze the soundness level of PT Bank Pembangunan Daerah Jawa Timur Tbk for the period 2020–2024 using the RGEC method, which consists of four assessment factors: Risk Profile, Good Corporate Governance (GCG), Earnings, and Capital. This research uses secondary data in the form of annual financial statements, GCG self-assessment reports, and official publications from the Financial Services Authority (OJK). The Risk Profile analysis focuses on the Non-Performing Loan (NPL) and Loan to Deposit Ratio (LDR) indicators. GCG is assessed based on self-assessment reports referring to POJK No. 55/POJK.03/2016 and POJK No. 17/POJK.03/2023. Earnings are measured using Return on Assets (ROA), Net Interest Margin (NIM), and the BOPO ratio, while Capital is evaluated using the Capital Adequacy Ratio (CAR). The results indicate that the Risk Profile is in the Sound to Very Sound category, with low NPL and LDR within a reasonable range. GCG obtained composite ratings between 2 (Sound) and 3 (Fair), Earnings showed fluctuations with declining ROA and NIM in 2023–2024, while BOPO remained sound. Capital consistently achieved the Very Sound category with CAR above the minimum requirement. The overall composite soundness ratings (CR) obtained consecutively from 2020 to 2024 were CR 2 (Sound), CR 1 (Very Sound), CR 2 (Sound), CR 1 (Very Sound), and CR 3 (Fairly Sound). Keywords: RGEC, Risk Profile, Good Corporate Governance, Earnings, Capital, Bank Jatim.

Efficiency is one measure of bank performance. The efficiency of a bank is influenced by the way management manages risk. Financial services authority regulation number 18 /pojk.03/2016 issued by Bank Indonesia which requires every bank in Indonesia to form a risk management team. Risk management problems in the banking world are related to the losses they experience, and Regional Development Banks are expected to be able to detect maximum losses that may arise in the future. This team is obliged to control various aspects of risk management in each bank and observe the impact of risk management implementation. This study aims to determine the efficiency level of conventional banking at PT Bank Pembangunan Daerah Jawa Tengah and the effect of financing risk, operational risk and liquidity risk on the efficiency level. Efficiency is measured by the method of Operating Expenses from Operating Income. The data used as the object of this research is Bank DKI Jakarta for the 2015-2020 period. The level of influence of the variables X1, X2, X3 on Y on the determinant coefficient (R2) shows the Adjusted R Square number of 0.359 or 35.9% which means that the variation in efficiency level can be explained by financing risk, operational risk and liquidity risk, the remaining 64.1% can be explained from other variables outside, for previous related studies there is no similarity in the influence of independent (x) and dependent (Y) values, because of differences in values ??generated from SPSS processing data. Based on the results of statistical tests and discussion analysis, it is known that financing risk, operational risk, liquidity risk simultaneously have no effect on the level of efficiency and only financing risk has a significant positive effect on the level of efficiency at PT Bank DKI Jakarta.

Accounting provides financial information which is used by manager to make decisions. Conventional accounting (accounting which accepted generally) treats human resources costs improperly which resulted in irrelevant financial information. Human resources accounting is the answer of problems faced by manager to make decision. PT Bank Pembangunan Daerah Lampung is a company which operational activities engaged in services, which is fully aware that human resources’ dominant role as one of the main factors to support the success of the company. It’s shown from its attempt done in recruitment, selection, development, and training of the employees to support its employment candidates, yet PT Bank Pembangunan Daerah Lampung haven’t applied human resources accounting. This study purposed to analyze the financial performance with profitability ratio analysis and compare the before and after the appliance of human resources accounting simulation by experimental descriptive r esearch method. The types of data used is secondary data from human resource costs sourced by financial statements PT Bank Pembangunan Daerah Lampung obtainable website. The result shows the financial performance of PT Bank Pembangunan Daerah Lampung gets better after human resources accounting is applied, as shows in the human resources accounting simulation. It caused cost of human resouce (acquisitions and development) into an investment not as expense.

This study aims to determine the effect of Operational Costs per Operating Income (BOPO), Non Performing Loans (NPL) and Loan to Deposit Ratio (LDR) on Return On Assets (ROA) (Case Study at PT Bank Pembangunan Daerah Nusa Tenggara Timur)”. Data collection techniques used are documentation and observation. The population in this study was PT Bank Pembangunan Daerah Nusa Tenggara Timur, and the sample studied was 49 respondents (49 quarters of the research variables) with the sampling technique used was purposive sampling. The data analysis techniques used are: descriptive and inferential with simple linear regression analysis tools and multiple linear regression. The results of the study show that partially the BOPO (X1) and NPL (X2) variables have a negative and significant effect on ROA of Bank NTT; while LDR (X3) has no significant effect on Bank NTT's ROA. Simultaneously, the BOPO, NPL, and LDR variables affect the ROA of NTT Bank.

The effect of credit risk management and capital adequacy on the profitability of Money Deposit Bank had been a subject of hot debates among the professionals and academic scholars. This study examines the impacts of credit risk management and capital adequacy on the performance of money deposit banks in Nigeria using panel data regression analysis conducted on E-view 7 data analysis software. Secondary data in the form of time series and cross-sectional data were obtained from the bank’s reports. Credit risk variables and capital adequacy ratio were extracted from 12 banks annual reports for the period 2015 to 2021. The independent variables are credit risk and capital adequacy ratio , while the independent variable is bank performance proxied on Return on Asset (ROA) and Return on Equity(ROE).This study found that loans and advances (LA) has negative and significant relationship with return on asset (ROA) (β=0.04; t=4). Loans and advances (LA) have positive and significant relationship with banks financial performance as proxied by return on equity (ROE) (α=0.01; t=2). The study also found that capital adequacy ratio (CAR) has positive and significant relationship with banks financial performance as proxied by return on equity (ROE) (α =-0.04; t=2). Loans and advances have negative and significant relationship with return on asset (ROA) (β=-0.19; t=-2). Non-performing loan has negative and significant relationship with return on equity (ROE) (α=-0.057; t=2). It is therefore recommended that banks management should constantly review their credit policy guidelines from time to time in consonance with the dynamics of business environment. Nigerian banks must constantly enhance their capital to serve as buffer to cushion the adverse effect of loan capital erosion arising from non-performing loans. Keywords: Credit; Risk, Capital adequacy, Management, Financial performance

This study explored the impact of various financial and risk management factors on the financial performance of commercial banks in Tanzania between 2017 and 2024. Specifically, the research addresses four primary questions: To what extent do non-performing loans (NPLs) affect the financial performance of commercial banks in Tanzania? What is the effect of capital adequacy on financial performance? How does a firm's size impact financial performance? And what is the impact of the debt-to-equity ratio on financial performance? The study employed a descriptive research design; the study utilized secondary data sourced from annual reports of the listed commercial banks. Descriptive statistics, correlation analysis, and multiple regression were used to analyze the data, but because panel data were used, the Hausman test was also used to decide whether or not the use of a random effect model or a fixed effect model would yield more accurate results. The analysis focuses on the effects of NPLs, capital adequacy ratio (CAR), firm size (F_SIZE), and debt-to-equity ratio (DER) on return on equity (ROE). Findings have revealed a non-significant positive relationship between NPLs and ROE, suggesting that factors beyond NPLs predominantly influence profitability. Firm size exhibits a marginally positive yet inconclusive impact on ROE, while DER demonstrates complex leverage effects. Additionally, CAR shows a negative but insignificant effect on the balance between financial stability and profitability. The research highlights the importance of addressing credit risk management within the Tanzanian banking sector, given its unique regulatory and economic challenges. Recommendations include adopting advanced credit risk assessment tools, improving asset quality management, effectively leveraging economies of scale, and implementing regulatory reforms to foster innovation and strengthen risk management. These strategies are aimed at improving the financial resilience and sustainable growth of commercial banks in Tanzania's competitive financial landscape

Primary objective of this study was to identify the determinants of financial performance of licensed domestic commercial banks in Sri Lanka. Data were collected from randomly selected nine licensed domestic commercial banks among thirteen listed on Colombo Stock Exchange in Sri Lanka for the period of ten years from 2006 to 2015. Return on assets (ROA) and Return on equity (ROE) have been considered as financial performance measures. Bank specific characteristics such as capital adequacy ratio, operating cost efficiency, nonperforming loans, liquidity and size as well as macroeconomic variables such as gross domestic product and interest rate have been treated as explanatory variables. Descriptive and inferential statistics have been used to examine the determinants of financial performance. The results of the study revealed that operating cost efficiency and nonperforming loans have negative and significant impact on return on assets while capital adequacy and economic growth have positive and significant impact. Further, nonperforming loans have negative and significant impact on return on equity. Finally, most of the bank specific factors have higher influence in determining financial performance of licensed domestic commercial banks rather than macro-economic factors. Keywords Operating cost efficiency, non performing loans, capital adequacy ratio, gross domestic product, financial performance

In Indonesia, the banking economy in carrying out its functions is based on the principle of prudence. The main function of banking is to collect funds from the public, and at the same time channel public funds and support the implementation of national development in order to increase the level of equitable development, national economic growth and national economic stability, towards improving the better living standards of the people. It is stated in Act Number 10 of 1998 concerning banking, that banks as business entities collect funds from the public in the form of deposits and distribute them to the public in the form of credit and or other forms in order to improve the standard of living of the community. The purpose of this research is to analize the financial performance comparison between Bank Mega (conventional) and Bank Mega Syariah from 2012 to 2018, by using these financial ratio aspects: CAR (capital adequacy ratio), NPL (non performing loan), ROA (return on assets), BOPO (biaya operasional dan pendapatan operasional), LDR (loan to deposit ratio). The data used in this research is the secondary data obtained from banking statistics issued by Otoritas Jasa Keuangan (OJK) from 2012 to 2018, with using Independent Sample T-Test analysis methode in SPSS 16 software. The result shows that there is a significant difference in LDR, NPL,BOPO ratio and no significant difference in CAR and ROA ratio between PT Bank Mega Tbk, (conventional) and PT Bank Mega Syariah In financial performance aspect, PT Bank Mega Tbk is better. However, in liquidity aspect, PT Bank Mega Syariah is better. Keywords: PT Bank Mega Tbk, PT Bank Mega Syariah, CAR, NPL, LDR, BOPO, ROA

This study examines the impact of financial ratios—Operating Expenses to Operating Income (BOPO), Capital Adequacy Ratio (CAR), Third Party Funds (DPK), Loan to Deposit Ratio (LDR), and Non-Performing Loans (NPL)—on the financial performance of banking companies listed on the Indonesian Stock Exchange (IDX) during the post-COVID-19 recovery period (2021–2023). The research adopts a quantitative descriptive approach, utilizing multiple linear regression analysis on data collected from banks meeting specific criteria within the study period. The findings reveal that BOPO significantly and negatively affects Return on Assets (ROA), highlighting operational inefficiencies that erode profitability. CAR also exhibits a negative impact, suggesting that the emphasis on regulatory compliance and capital adequacy post-pandemic may hinder credit expansion and productive investment. Conversely, DPK and NPL show no significant influence on ROA, attributed to idle funds and effective credit risk mitigation measures. While indicative of efficient fund distribution, LDR negatively affects ROA due to heightened credit risk and operational costs during the economic recovery. This study contributes to the understanding of banking sector dynamics in Indonesia during a critical recovery phase, providing insights into optimizing financial performance through improved operational efficiency and strategic fund allocation. The results highlight the importance of balancing regulatory compliance, risk management, and profitability in the evolving economic landscape.