THE INFLUENCE OF MARKET RISK ON FINANCIAL PERFORMANCE IN STATE-OWNED AND FOREIGN BANKS LISTED ON INDONESIA STOCK EXCHANGE

Abstract

Market risk has remained a major challenge since the financial crisis. The financial crisis taught us that risk reduction and implementation are necessary to achieve continued success. Therefore, to anticipate it will happen again, market risk has become one of the banking industry's considerations. This study aims to analyze the market risk influence on the financial performance of State-Owned Bank and Foreign Banks listed on the Indonesia Stock Exchange period of 2009-2019. In this study, market risk is measured by the interest rate risk. This study is conducted through quantitative methods, Data Regression Panel; the test and analysis using SPSS 20 software. The sample of this research is four State-Owned Bank banks and eight Foreign Banks in 2009-2019. This study found that Market Risk partially has a positive and significant influence on EPS.