The Impact of E-Banking Channels, Size, and Liquidity Risk on Bank Performance in Indonesia with Credit Risk as Moderating Variable

Abstract

This study discussed the impact of technology in e-banking channels and the internal factors of size and liquidity risk on the bank's performance. This study used eight banks that were chosen using a purposive sampling technique with a duration of five years. Return on Asset (ROA) was the dependent variable used to measure a bank's performance, while the independent variables used were E-Banking Channels, Size, and Liquidity Risk. Credit risk was further studied in this study as the moderating variable. The result showed that E-Banking Channels had a significant negative impact on Bank Performance, while Size and Liquidity Risk had a significant positive impact on Bank Performance. Credit Risk moderated the relationship between E-Banking Channels and Bank Performance significantly, and it did not moderate the relationship of both Size and Liquidity Risk on Bank Performance.  

Keywords:  E-Banking Channels, Bank Performance, Size, Liquidity Risk.

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