Open AccessIntellectual Capital and Risk Management to Overcome Non Performing Loans
Author(s) -
Fika Azmi,
Pratomo Cahyo Kurniawan
Publication year - 2021
Publication title -
jurnal analisis bisnis and ekonomi/jurnal analisis bisnis ekonomi
Language(s) - English
Resource type - Journals
eISSN - 2579-647X
pISSN - 1693-5950
DOI - 10.31603/bisnisekonomi.v19i1.4253
Subject(s) - intellectual capital , business , capital (architecture) , risk management , obligation , actuarial science , economic capital , finance , accounting , economics , human capital , economic growth , archaeology , political science , law , history
The implementation of risk management is an obligation that must be carried out by rural banks in every business activity in accordance with Financial Services Authority regulation 13/OJK.03/2015. This study aims to examine whether the implementation of risk management can strengthen or weaken the effect of intellectual capital on non-performing loans. The sampling method used the saturated method and obtained data of 26 research samples. The selected respondents were the leaders of the rural banks in Semarang City. Data analysis using Moderated Regression Analysis (MRA) shows that intellectual capital has a negative effect to non-performing loans. Furthermore, the implementation of risk management strengthens the relationship between intellectual capital and non-performing loans. This means that optimal management of intellectual capital and supported by effective risk management will reduce non-performing loans