FACTORS AFFECTING THE LIQUIDITY RISK OF COMMERCIAL BANKS LISTED ON THE INDONESIAN STOCK EXCHANGE

Abstract

Introduction: This study aims to identify variables that affect the liquidity risk of the banking sector in Indonesia.
Methods: This research method was conducted by collecting data from 41 banking companies over five years (2019-2023), and applying data processing analysis using panel data regression analysis techniques.
Results: The results of this study found that CAR, NPL, and SIZE harm liquidity risk (LA), while NPL, SIZE, OIR, and DAR harm liquidity risk (LD).
Keywords: liquidity risk, capital adequacy, asset quality, bank size, efficiency, and deposit.