Peran Moderasi Diversifikasi Pendapatan Dalam Pengaruh Risiko Kredit terhadap Profitabilitas Bank yang Tercatat di Bursa Efek Indonesia Periode 2009-2021

Deskripsi

This study aims to understand the independent influence of credit risk on the profitability of banks listed on the Indonesia Stock Exchange (IDX), as well as exploring income diversification as a moderator of the relationship. Using data from 36 conventional banks during the 2009-2021 period, it was found that credit risk (NPL) has a significant negative effect on bank profitability (ROA). Most importantly, this study finds that there is a moderating role of income diversification on the relationship, which significantly weakens credit risk's negative effect on bank profitability. The implications of this study provide a new perspective for practitioners, regulators, and academics, regarding mitigating losses from taking high credit risk through income diversification.Ada Tabel