ANALYSES OF BANK PERFORMANCE ON FINANCIAL SYSTEM STABILITY IN INDONESIA

Abstract

Institutions with high risk in their business. Large banks have a close relationship with bank risk. This study aimed to determine the effect of Commercial Bank Business Group with a minimum core capital of Rp. 30 trillion (the 4^th CBBG) banks' performance in Indonesia on Indonesia's financial system stability using secondary data for 2005-2020. This study uses a simple panel regression estimation, namely the Common Effect Model, Fixed Effect Model, and Random Effect Model. The results showed that the NPL, LDR and NII, positively affected financial system stability, while the BOPO negative affected.