Green Credit Policy, Market Competition, and Bank Risk-Taking: Evidence from Indonesian Commercial Banks

DataThis study uses annual panel data from commercial banks in Indonesia listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. The data were obtained from various reliable secondary sources, primarily annual reports and sustainability reports accessed through the official websites of the respective banks.Data collected from the income statements include: total operating expenses, other operating expenses, interest expenses, personnel expenses, administrative expenses, other operating income, net interest income, total revenue, operating profit, interest income, profit before tax, and net profit. Meanwhile, balance sheet data consist of: total assets, total deposits (including time deposits, savings, and demand deposits), equity, net and gross loans, as well as financial ratios such as ROA, NIM, NPL (gross and net), and LDR.

Green credit data were collected from sustainability reports starting in 2019, as most Indonesian banks only began reporting sustainable finance data consistently from that year onward. This development was driven by the Financial Services Authority regulation on sustainable finance, which was issued in mid-2017. The implementation and reporting of this regulation required an adaptation period from the banking sector.