Impact Financial Risk on Financial Performance Bank in Indonesia

This study aims to analyze the impact of financial risk on the financial performance of banks in Indonesia. This study uses panel data from the annual report of 23 banks listed in Indonesia Stock Exchange period 2011-2015. Data analysis was done by using path analysis with Smart Pls 3.0. Endogenous variable is financial performance. Exogenous variables are financial risk consisting of liquidity risk of credit risk, exchange rate risk and interest rate. The findings of the study indicate that credit risk has a negative and significant effect on financial performance. Interest rate risk has a positive and significant impact on financial performance. Liquidity risk and exchange rate risk does not affect the financial performance of banks in Indonesia.