PENGARUH RISIKO KREDIT, LIKUIDITAS DAN KECUKUPAN MODAL TERHADAP PROFITABILITAS PADA PERUSAHAAN PERBANKAN YANG TERCATAT DALAM BURSA EFEK INDONESIA (BEI) TAHUN 2017-2020

Abstract

This study is motivated by the phenomenon of the increasing number of bad loans experienced by banks. The existence of credit risk can have an impact on borrowers and banks. If there is a case of bad credit like this, then the money cannot be played, which causes the banks to lake funds. The implementation of bank operations, both in the short and long term, becomes a problem that is quite
complicated in the utilization of banking liquidity, because if the bank lacks liquidity, it will disrupt the banking system as a whole. This study aims to determine the effect of credit risk, liquidity, and capital adequacy towards significantly towards profitability of banking companies listed on the Indonesia Stock Exchange (IDX) in 2017-2020. The method in this study uses a quantitative. The data collection method used documentation with an archival strategy. Meanwhile, the data analysis used descriptive statistics, classical assumption testing, multiple linear regression analysis, multiple determination coefficient (R2). The results of this study indicate there is an effect of credit risk,
liquidity and capital adequacy toward the profitability of banking companies means the first, second, third, fourth hypothesis is accepted.

Keywords: Credit Risk, Liquidity, Capital Adequacy, Profitability