ANALYSIS OF THE EFFECT OF GREEN BANKING FINANCING AND BANK HEALTH ON FINANCIAL PERFORMANCE THROUGH BANK SIZE AS A MODERATING VARIATION OF THE BANKING INDUSTRY IN INDONESIA
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Jepri Wandes Nababan
Isfenti Sadalia
Khaira Amalia Fachrudin
This study aims to analyze the effect of green banking financing and bank health on financial performance through bank size as a moderating variable in the banking industry in Indonesia. The type of research used is quantitative research. The data analysis technique used is descriptive statistical method and panel data regression analysis (Eviews). The sample in this study was conducted on banking companies listed on the Indonesia Stock Exchange by implementing the Green Banking financing concept in Indonesia for 5 periods, namely 2019 - 2023. The results of this study indicate that the implementation of green banking, capital adequacy ratio, non-performing loans, operating expenses to operating income (BOPO), loan to deposit ratio and total assets have a significant effect on return on assets. Green banking practice has a positive effect on bank financial performance. Non-performing loans have a negative effect on return on assets. Operating expenses to operating income (BOPO) have a negative effect on return on assets. Liquidity (LDR) has a positive effect on return on assets. Cost efficiency ratio has a negative effect on bank financial performance. Bank size can moderate green banking on return on assets. Company size can moderate CAR. Company size cannot moderate NPL. Company size cannot moderate the operational efficiency ratio (BOPO).
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