Is Indonesia Really That Green? A Comprehensive Study On Environment Credit Risk Management Of Commercial Banks’ Sector In Indonesia

Larasati, Adinda Ayu (2025) Is Indonesia Really That Green? A Comprehensive Study On Environment Credit Risk Management Of Commercial Banks’ Sector In Indonesia. Other thesis, Institut Teknologi Sepuluh Nopember.

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Abstract

Studi ini mengkaji integrasi keuangan berkelanjutan ke dalam Manajemen Risiko Kredit Lingkungan (ECRM) di bank-bank komersial Indonesia, menggunakan regresi data panel efek acak pada 50% bank. Temuan utama menunjukkan bahwa ECRM, NPL, dan CAR tidak secara signifikan memengaruhi Return on Assets (ROA), sementara BOPO berdampak signifikan terhadap ROA, yang menekankan peran efisiensi operasional dalam kinerja bank. Kepemilikan bank juga memengaruhi ROA, dengan bank-bank milik pemerintah berkinerja buruk karena campur tangan politik, sementara bank-bank Syariah menunjukkan ROA yang lebih tinggi terkait dengan praktik-praktik berkelanjutan. Namun, kepemilikan dan prinsip-prinsip perbankan menunjukkan efek yang tidak meyakinkan pada praktik-praktik lingkungan. Bank-bank yang bermodal besar berada pada posisi yang lebih baik untuk mengadopsi langkah-langkah keberlanjutan meskipun efek modal yang terbatas pada ROA. Studi ini menggarisbawahi perlunya penelitian lebih lanjut dengan kumpulan data yang lebih besar untuk meningkatkan pemahaman tentang ECRM dan implikasi keuangannya
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This study examines the integration of sustainable finance into Environmental Credit Risk Management (ECRM) in Indonesian commercial banks, using random effects panel data regression on 50% of banks. Key findings indicate that ECRM, NPL, and CAR do not significantly influence Return on Assets (ROA), while BOPO significantly impacts ROA, emphasizing the role of operational efficiency in bank performance. Bank ownership also affects ROA, with government owned banks underperforming due to political interference, while Sharia banks exhibit higher ROA linked to sustainable practices. However, ownership and banking principles show inconclusive effects on environmental practices. Well-capitalized banks are better positioned to adopt sustainability measures despite capital's limited effect on ROA. The study underscores the need for further research with larger datasets to enhance the understanding of ECRM and its financial implications.

Item Type:	Thesis (Other)
Uncontrolled Keywords:	sustainable finance, environmental credit risk management, return on assets, Indonesian commercial banks, random effects panel data regression
Subjects:	H Social Sciences > HG Finance > HG3751 Credit--Management.
Divisions:	Faculty of Creative Design and Digital Business (CREABIZ) > Business Management > 61205-(S1) Undergraduate Thesis
Depositing User:	Adinda Ayu Larasati
Date Deposited:	23 Jul 2025 04:10
Last Modified:	23 Jul 2025 04:10
URI:	http://repository.its.ac.id/id/eprint/120772

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