Implementation of Basel II and Good Corporate Governance towards Risk Managementin Indonesian Banking Industry

11Ajeng Andriani Hapsari, 2Muhammad Bayu Aji Sumantri, 3Mohd Haizam Mohd Saudi, 4John henry

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Abstract:

This study aims to examine the effect of Basel Capital Accord and Good Corporate Governance regulations on Risk Management in Indonesian Banking. The Basel Capital Accord variable is obtained from the report of Directorate of Banking Research and Regulation of Bank Indonesia on Basel II Implementation in Indonesia, and GCG Variable is measured using self assessment method according to Bank Indonesia Circular Letter no. 9/12 / DPNP. The population of this study is all Indonesian banks listed on the Indonesia Stock Exchange during the period 2011 to 2016 with the method of panel data regression analysis. This research is descriptive verification research with Purposive Sampling method which is one of Non Probability Sampling method. From the results of the study it was found that the Minimum Capital Ratio and Operational Risk positively and significantly influence the management of credit risk banking. While Ratio of Capital Adequacy Ratio and Operational Risk have positive and significant impact to operational risk management. Credit Risk has a negative and significant effect on credit risk management as well as Capital Adequacy Ratio which negatively and significantly influence to operational risk management

Keywords:

Basel capital accord, Good corporate governance, Manajemen Risiko, Perbanka

Paper Details
Month2
Year2020
Volume24
IssueIssue 2
Pages2704-2721