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Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
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Published: 20 May 2022

The Macroeconomic-Based Systemic Risks and Bad Loans of Commercial Banks Listed in the Indonesian Capital Market

Helmi Setiawan Muhammad, Erie Febrian, Bram Hadianto

Padjadjaran University (Indonesia), Maranatha Christian University (Indonesia)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

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doi

10.31014/aior.1992.05.02.414

Pages: 70-75

Keywords: Commercial Banks, Loan Risk, Systemic Macroeconomic Factors

Abstract

The risk is the probability of uncertain situations with the changes. In banks, this circumstance happens when they distribute credits to the parties needing the cash. In performing this intermediary function, the systemic risks related to macroeconomics are available: inflation and exchange rate (ER) of IDR/USD. Hence, this research objective is to investigate and analyze the impact of these systemic risks on non-performing loans. The population originates from the commercial banks in the capital market in Indonesia from 2009 until 2017. We apply the Slovin formula and a simple random sampling method to calculate and acquire the total representative samples. After the archival technique collects the data, we use the regression with pooled data to analyze them. This study demonstrates that systemic risk from the inflation rate positively affects non-performing loans; however, the ER of IDR/USD shows no effect.

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