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BANK-SPECIFIC DETERMINANTS OF CREDIT RISK: EMPIRICAL EVIDENCE FROM INDONESIAN BANKING INDUSTRY

Vania Andriani, Sudarso Kaderi Wiryono


High credit risk levels could impose systemic risk on the banking system which then leads into harming the overall economic condition of a country. Therefore, it is essential to discover whether the same theory is actually applicable in Indonesia. This research is aimed to find the determinants of credit risk in Indonesian banks. Specifically, bank-specific variables will be used as the determinants and to find out whether the bank ownership structure as one of the bank-specific variables influence the level of credit risk. Annual financial data selected from 2002 until 2013 will be used in this research.