The Macroeconomic-Based Systemic Risks and Bad Loans of Commercial Banks Listed in the Indonesian Capital Market

The risk is the probability of uncertain situations with the changes. In banks, this circumstance happens when they distribute credits to the parties needing the cash. In performing this intermediary function, the systemic risks related to macroeconomics are available: inflation and exchange rate (ER) of IDR/USD. Hence, this research objective is to investigate and analyze the impact of these systemic risks on non-performing loans. The population originates from the commercial banks in the capital market in Indonesia from 2009 until 2017. We apply the Slovin formula and a simple random sampling method to calculate and acquire the total representative samples. After the archival technique collects the data, we use the regression with pooled data to analyze them. This study demonstrates that systemic risk from the inflation rate positively affects non-performing loans; however, the ER of IDR/USD shows no effect.