Pengaruh Risiko Kredit dan Tingkat Likuiditas Terhadap Profitabilitas Perbankan Yang Terdaftar di BEI Periode Tahun 2018-2022

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Quantitative analysis demonstrates significant links between credit risk and profitability in banks, highlighting liquidity's limited role.

Higher non-performing loans significantly reduce bank profitability, indicating poor credit quality management is detrimental.
The loan to deposit ratio shows a positive but statistically insignificant correlation with profitability as measured by return on assets.
Multiple linear regression analysis reveals that both liquidity and credit risk significantly influence profitability when considered together.
Effective management of asset quality and liquidity is crucial for enhancing bank financial performance and operational efficiency.

Sagara-gara et al. (2025) studied this question.

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Quantitative analysis demonstrates significant links between credit risk and profitability in banks, highlighting liquidity's limited role.