Credit risk, operational risk, and liquidity risk on profitability

Profitability is the ability of the Village Credit Institution to generate profits and is a ratio that can assess how the Village Credit Institution's ability to generate profits. The high profitability of the Village Credit Institution indicates the good performance of the Village Credit Institution. This study aims to determine the effect of credit risk, operational risk, and liquidity risk on profitability. This research was conducted at the Village Credit Institution for the period 2017-2021. The data collection method used is the non-behavioral observation method with multiple linear regression data analysis techniques. The results showed that Credit Risk has a negative and significant effect on Profitability. Operational Risk has a negative and significant effect on Profitability. Liquidity Risk has a positive and significant effect on Profitability. The profitability of the Village Credit Institution can be maximized by applying the precautionary principle, monitoring and supervising the operations of the Village Credit Institution to minimize costs and provide sufficient liquidity and balanced with good lending.