Effect of Implementation of Risk Management on Financial Performance of Banking Company in Indonesia Stock Exchange

Abstract

This study aimed to examine effect of Non-Performing Loan (NPL), Net Interest Margin (NIM), Loan to Deposit Ratio (LDR) and BOPO toward financial performance (ROE). The data in this study was collected from Indonesian Banking Directory of 2013 -2015. Sampling technique using purposive sampling. The collected sample was 24 banks. The data is analyzed by using method of multiple linier regression. This result of research shows that BOPO affected positively significant toward financial performance (ROE) and NPL, NIM and LDR not affected toward financial performance. This study result is hoped to be a consideration for shareholders, government, management, investors and public community.