Impact of Information Disclosure on Banking Risk

Novita Febriany; Taufiq Marwa; Suhel Suhel; Hasni Yusrianti

doi:10.32535/jicp.v7i5.3682

Impact of Information Disclosure on Banking Risk

Novita Febriany, Taufiq Marwa, Suhel Suhel, Hasni Yusrianti

Abstract

This study examines the impact of information disclosure on the management of banking risks based on previous research. Various studies show that better disclosure in financial reports can reduce the uncertainty faced by external parties such as investors, regulators, and creditors, as well as improve the efficiency of risk management by the bank's management. This study explains that transparency can strengthen the trust relationship between the bank and its customers, and can minimize risk management in decision-making. On the other hand, lack of transparency or insufficient disclosure can increase uncertainty and may lead to higher risks in decision-making, which can ultimately affect the financial stability of the bank. Increasing transparency in the disclosure of both financial and non-financial information is expected to help reduce bank risks and enhance the overall stability of the financial system.

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DOI: https://doi.org/10.32535/jicp.v7i5.3682

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