Abstract

This study investigated the relationship between revenue diversification and market power on the profitability of commercial banks in Indonesia. This study uses data from commercial banks in Indonesia and further analysis of data from commercial banks that have moderately diversified their income for the 2016 -2020 period. This study using the purposive sampling method will obtain a sample of 87 commercial banks and 13 commercial banks that have diversified moderately. The results of this study indicate that revenue diversification has no significant effect on the profitability of commercial banks in Indonesia and commercial banks that home diversified moderate in Indonesia. The results of market power do not have a significant effect on the profitability of banks in Indonesia and/ market power has a positive and significant effect on banks that here diversified moderately.

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