The Impact of Capital Adequacy, Credit Risk, and Operational Efficiency on the Profitability of State-Owned Banks in Indonesia (2014-2023)

Akmal Ariqsyah Putra Arnoby; Dewi Rahmayanti

doi:10.55927/jfbd.v4i1.47

Authors

Akmal Ariqsyah Putra Arnoby Fakultas Ekonomi dan Bisnis, Universitas Bengkulu
Dewi Rahmayanti Fakultas Ekonomi dan Bisnis, Universitas Bengkulu

DOI:

https://doi.org/10.55927/jfbd.v4i1.47

Keywords:

Bank Profitability, Capital Adequacy, Credit Risk, Operational Efficiency

Abstract

This study examines the impact of internal banking factors, including capital adequacy, credit risk, and operational efficiency, on the profitability of state-owned banks in Indonesia from 2014 to 2023. A quantitative approach is employed, utilizing secondary data obtained from the Financial Services Authority (OJK) website and the financial reports of state-owned banks. The results indicate that capital adequacy negatively and significantly impacts the profitability of state-owned banks, whereas credit risk has a positive but statistically insignificant effect. Furthermore, operational efficiency shows a negative and significant correlation with bank profitability. These insights are anticipated to provide useful guidance for policymakers in formulating strategies aimed at improving the profitability of state-owned banks.

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