Proceedings of the 24th Malaysia-Indonesia International Conference on Economics, Management, and Accounting (The 24th MIICEMA) in conjunction with The 9th Sriwijaya Economics, Accounting, and Business Conference (The 9th SEABC) (MIICEMA-SEABC 2025)

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Does Credit Risk Mediate Digitalization and Bank Size Impacts on Bank Profitability?

Authors
Fransiska Soejono1, 2, Yuliani Yuliani2, *, Muizzuddin Muizzuddin2
1Musi Charitas Catholic University, Palembang, 30113, Indonesia
2Sriwijaya University, Palembang, 30139, Indonesia
*Corresponding author. Email: 01023682429005@student.unsri.ac.id
Corresponding Author
Yuliani Yuliani
Available Online 23 February 2026.
DOI
10.2991/978-94-6463-994-0_11How to use a DOI?
Keywords
Digitalization; Bank Size; Profitability; Credit Risk
Abstract

This study investigates how digitalization, bank size, and credit risk interact to influence profitability in Indonesian banks. Analyzing panel data from 48 banks (2019–2023) with fixed effects regression. Results show that bank size positively affects profitability, but digitalization has no significant direct effect. Although bank size is negatively associated with credit risk, credit risk does not significantly affect profitability, and thus does not mediate the relationship. These findings suggest that larger banks benefit from economies of scale, but credit risk management remains critical. Digital transformation needs deeper integration to improve financial performance. This study high-lights the importance of internal capabilities and risk governance in enhancing bank profitability in the digital era.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 24th Malaysia-Indonesia International Conference on Economics, Management, and Accounting (The 24th MIICEMA) in conjunction with The 9th Sriwijaya Economics, Accounting, and Business Conference (The 9th SEABC) (MIICEMA-SEABC 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
23 February 2026
ISBN
978-94-6463-994-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-994-0_11How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Fransiska Soejono
AU  - Yuliani Yuliani
AU  - Muizzuddin Muizzuddin
PY  - 2026
DA  - 2026/02/23
TI  - Does Credit Risk Mediate Digitalization and Bank Size Impacts on Bank Profitability?
BT  - Proceedings of the 24th Malaysia-Indonesia International Conference on Economics, Management, and Accounting (The 24th MIICEMA) in conjunction with The 9th Sriwijaya Economics, Accounting, and Business Conference (The 9th SEABC) (MIICEMA-SEABC 2025)
PB  - Atlantis Press
SP  - 142
EP  - 159
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-994-0_11
DO  - 10.2991/978-94-6463-994-0_11
ID  - Soejono2026
ER  -