What question did this study set out to answer?

The study investigates the relationship between bank profitability and credit risk in Indonesian banks, focusing on both conventional and Islamic banks.

June 12, 2026Asia-Pacific Journal of Accounting & Economics

Does credit risk impact the profitability of banks in Indonesia?

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Authors

WAWarnika Febri AstantyTunghai University YHYu-Min HuangTunghai University YCYung-Ho ChangTunghai University

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Implication

Examines how credit risk affects profitability in Indonesian banks, suggesting improvements for both banking models.

Key Points

The study investigates the relationship between bank profitability and credit risk in Indonesian banks, focusing on both conventional and Islamic banks.
Analyzed data from 2013 to 2022
Examined various profitability and credit risk metrics including PPOP, ROA, NPLR, and CAR
Compared Islamic and conventional banks' performance
Islamic banks experience higher rates of Non-Performing Financing and reduced profitability
Conventional banks maintain strong capital and liquidity but need optimization in profit margins
Highlights significant differences in credit risk management strategies between both banking models

Cite This Study

Astanty et al. (2026) studied this question.

synapsesocial.com/papers/6a2ba31a8101cf8926f01def https://doi.org/10.1080/16081625.2026.2683809

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Does credit risk impact the profitability of banks in Indonesia?

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Implication

Key Points

Cite This Study

Does credit risk impact the profitability of banks in Indonesia?

Discussion

Member takes

Implication

Key Points

Cite This Study

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