Abstract
<p> The purpose of this research is to investigate the influence of macroeconomic fundamentals such as real GDP growth, deposit rate, and return of composite stock price index, and the influence of bank performance such as the growth of secondary reserve and Non Performing Loans to Third Party Funds. The growth of the banking sector in Indonesia in the 1998 Asian Banking Crisis and the 2008 Global Financial Crisis and also to analyze the different influence of independent variables to Third Party Funds growth in both crises. The data used are secondary data with the research object of 101 banks which were established in both crises consistently.</p><p> The method which is used in this study is the pooled EGLS (Cross-Section Weight) and fixed effect method. The results show that macroeconomic fundamentals such as real GDP growth, deposit rate, and return of IHSG have significant effect to growth of Third Party Funds, and bank performance such as the growth of secondary reserve has a significant effect while NPL has no significant effect to growth of Third Party Funds in both crises. Besides that, there is a different effect of each independent variable in both crisis periods where all the independent variables in the period of the 1998 Asian Banking Crisis is not according to the theory, while all of the independent variables in the period of the 2008 Global Financial Crisis is according to the theory.</p><p><span class="fontstyle0">JEL Classification: </span><span class="fontstyle2">E50, G01, G21</span></p><p><span class="fontstyle2"><br /></span><span class="fontstyle0">Keywords</span><span class="fontstyle2">: Banking Performance, Crisis, Cross-Section Weight,<br />Macroeconomic Fundamentals Third Party Funds Growth</span></p>
Highlights
Banks are intermediation institutions which function to collect and distribute the funds of society
Real GDP has a negative influence to third party fund growth, this is caused by the snowball effect of the crisis which occurs where the crisis previously began from the baht exchange rate crisis in Thailand rapidly develops into an economic crisis, continuing into a social crisis, a political crisis in Indonesia (Suruji et al, 1998) This crisis which spreads creates an anomaly condition and makes the monetary instrument not able to work for stabilizing the rupiah and the economy, and the fiscal sector which is expected to be the motor of the economy is under pressure as a cause of decreasing income
Based on the qualitative and quantitative analysis which are implemented in previous chapters, several results below are able to be concluded: 1. For the 1998 Asian banking crisis, the fundamental macroeconomic variables which significantly influences the growth of third party funds are the real GDP growth with a negative influence, deposit interest rate with a negative influence, and composite stock price index return rate with a positive influence
Summary
Banks are intermediation institutions which function to collect and distribute the funds of society. The key of bank management success is how banks are able to win the heart of society and their role as intermediation institutions are able to function well because bank management activities cover planning, implementation, and control to collecting funds from society (Nurdiana, 2008). The performance and health of a bank is influenced by the domestic economic situation. No., June 2018 positive economic growth, a stable interest rate, and a stable composite share price index level will create a healthy banking system and able to be seen from several indicators such as a positive secondary reserve growth and a low Non Performing Loan value. If an economy experiences shock it will influence the banking system performance and health. 2003) used individual bank data and a dynamic data panel model to find the determinant of the Argentine bank crisis in 2001, and the result shows that one of the bank crisis determinants in Argentina is macroeconomic shock
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