RISK DISCLOSURE ANALYSIS OF INDONESIAN BANKING BASED ON PILLAR 3 OF BASSEL II
Banking is an institution that functions as a place for financial management or financial intermediary (financial intermediary) between parties who have funds and those who manage these funds. Banking has a very important role in the collection or collection of funds and also the distribution of funds in the real sector which functions as a framework for economic growth. The results of this study indicate that risk disclosure is very important to be carried out in banking institutions. This is because banking institutions are very vulnerable to risk, with disclosure of the risks that will be faced by banking institutions in Indonesia in the future a management can be carried out on these risks in minimizing the adverse effects caused by these risks. Risk management provides a systematic and structured view in solving problems that may arise in the future. The application of this risk management in the banking world with the Basel II conversion is expected to make banks healthier so that the financial condition of a country will be better.
Bassel II, Risk Disclosure, Indonesian Banking; JEL Classification Codes: E51, G24