PENGARUH RASIO LIKUIDITAS DAN EFISIENSI OPERASIONAL TERKAIT PROFITABILITAS DENGAN RISIKO KREDIT SEBAGAI VARIABEL INTERVENING

Abstract

Financial institutions that use people's savings or deposits to lend money to people or organizations in need are called "banking". A bank's success depends onpublic trust in its ability to mediate and move cash. This study examines how liquidityratios and operational efficiency affect profitability, taking into account credit risk.This research examines Indonesian banking companies that went public between 2018and 2021. Purposive sampling was used to select the sample. Data analysis usesregression analysis. PLS and hypothesis testing are used using mediating orintervention factors. This research shows that the liquidity ratio has a direct influenceon a company's credit risk. Please note that the liquidity ratio does not directly affectthe company's profitability. Creditor default risk and profitability are directlyinfluenced by operational efficiency. Credit risk also has a significant effect on income. It is important to note that credit risk negates the economic impact of liquidity ratiosand operational efficiency.