The Effect of Banking Performance, Insurance Institutions and Capital Market toward Economic Growth in Indonesia

Abstract

The economic growth is affected by many factors. This study will investigate whether the three factors including banking performance, insurance institutions performance, and capital markets in a country will affect its economic growth. The study took place in Indonesia. The study applied a quantitative method, and used secondary data sources with a documentation data collection technique. The population of this study is banking companies and insurance institutions listed on the Indonesia Stock Exchange (IDX) for the year 2017-2019 with purposive sampling technique, the analytical method using IBM SPSS Statistics Base 23.0. The research findings indicate that the three factors including Return on Assets on bank, Non-Performing Loan on bank, Return on Assets on insurance company, banking and insurance stock returns on IDX have non-significant effects on economic growth in Indonesia.