Determinants of Banking Stability Listed on the Indonesia Stock Exchange
DOI:
https://doi.org/10.55927/ajabm.v4i1.83Keywords:
Bank Stability, Bank Size, Liquidity Risk, Credit Risk, Inflation, GDP GrowthAbstract
Banks often face uncertainty and failure, making banking stability an important issue in several countries. This study analyzes the factors that affect the stability of banks listed on the Indonesia Stock Exchange for 2019-2023, consisting of bank size, liquidity risk, credit risk, and macroeconomic factors, namely inflation and GDP growth. Using quantitative methods and panel data regression analysis, the results show that bank size, liquidity risk, and GDP growth have a positive effect, while credit risk and inflation have a negative effect. Therefore, banks should optimize the use of assets, improve capital management, take advantage of GDP growth, and focus on managing credit risk and inflation to maintain stability.
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