The Effect of Credit Risk, Liquidity Risk, and Bank Capital on Bank Profitability During the COVID-19
Abstract
This research aims to examine the impact of credit risk, liquidity risk, and bank capital on profitability banks in Indonesia and Malaysia during the global economic crisis of Covid-19 using panel regression analysis methods by E-views software. The research sample was 232 observational data for Indonesian banking and 64 observational data for Malaysian banking that were gained with purposive sampling method from 2020-2021 quarterly. The results of this study: are credit risk has a significant and negative impact on the profitability of Indonesian banks but has no effect on the profitability of Malaysian banks; liquidity risk has a significant and positive impact on the profitability of Indonesian banks but has no effect on the profitability of Malaysian banks; and bank capital does not affect the profitability of Indonesian and Malaysian banks.
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DOI: https://doi.org/10.24167/jmbe.v5i2.10204
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