ABSTRACT
The banks' role in promoting the country's economy is important. The assessments of financial performance and liquidity risk are the internal factors in measuring banking performance. The liquidity risk measure by several factors, which are liquidity gap, cash, deposits, NPLs, and Bank Indonesia reference interest rates. Meanwhile, bank performances measure by earnings before tax. This research used a quantitative approach. The research objects are foreign banks registered in Indonesia during the 2014–2018 period. The sampling technique used purposive sampling following the criteria specified in this study. The data analysis technique used the multiple linear regression method. This research methodology used the F test, the determination coefficient, and partial testing done by the t-test. Based on the partial test results, NPL and deposits affect the EBT, while cash, liquidity gap, and interest rates did not affect the EBT. The simultaneous test results show all variables simultaneously influenced EBT.
