PENGARUH RISIKO KREDIT DAN BIAYA OPERASIONAL TERHADAP PROFITABILITAS DENGAN LIKUIDITAS SEBAGAI MEDIASI PADA BANK PERKREDITAN RAKYAT MILIK PEMERINTAH DAERAH DI JAWA TIMUR

Abstract

Abstract: Profitability can be interpreted as the ability of banks to seek maximum profit or profit in carrying out operational activities. The main purpose of analyzing profitability is to determine how efficient banking businesses are in seeking profit. This study aims to analyze the effect of credit risk and operating costs on profitability with liquidity as a mediator. This study uses a quantitative research design with a research sample of 16 regional government-owned BPR in East Java. The sampling technique is purposive sampling. The type of data used in this study is secondary data. Credit risk is measured using ROA, operating costs are measured using BOPO, liquidity is measured using LDR, profitability is measured using ROA. The data analysis technique uses panel data regression. The results of the study show that operating costs have a significant negative effect on profitability at BPR in East Java Province for the 2019-2023 period, while credit risk and liquidity do not have a significant effect. Credit risk and operating costs do not have a significant effect on profitability at BPR in East Java Province for the 2019-2023 period. Credit risk and operating costs do not have a significant effect on profitability through liquidity at BPR in East Java Province for the 2019-2023 period. The suggestion put forward in this study is to implement a digitalization strategy by using mobile banking features to replace conventional transactions, so that it will increase the effectiveness of the bank's business and also reduce operational costs in the long term.

Keywords: Profitability, Liquidity, Operational Cost, Credit Risk