Profitability Of Banks In Indonesia Research Articles

Pengaruh Rasio Kecukupan Modal, Likuiditas, Risiko Kredit dan Efisiensi Biaya Terhadap Profitabilitas Pada Bank Go Public

Abstract - This increase in economic growth does not necessarily increase the profitability of banks in Indonesia. There are three fundamental problems that have been unearthed by the Deposit Insurance Corporation (LPS) for banks, among others, the first decline in bank interest rates continuously causing bank interest margins to thin. Second, the regulatory burden requires banks to set aside capital for additional bank capital reserves and thirdly the potential increase in the risk of non-performing loans due to global economic uncertainty and the uneven recovery of the domestic economy. For this reason, this research was conducted to find out how much profitability of domestic banks listed on the Indonesia Stock Exchange in the period 2014-2018 and also the relationship between internal predictors which, according to the review study, had a significant effect on profitability. The population in this study were 43 banks listed on the Indonesia Stock Exchange in the 2014-2018 period while the sample was 10 banks listed on the IDX with the largest number of assets according to Bank Indonesia using the purposive sampling method. The results showed a significant CAR, LDR, NPL and BOPO significantly influence ROA. While partially LDR, NPL and BOPO have a significant effect on ROA while CAR has no significant effect. The magnitude of the effect of the predictor variable on profitability using the coefficient of determination obtained by 74.2% while the remaining 25.8% is influenced by other variables outside this research model.Keywords: Capital Adequacy Ratio (CAR), Liquidity Ratio (LDR), Credit Risk (NPL), Operational Cost Efficiency (BOPO). Profitability (ROA).

Analysis of Capital Adequacy Ratio, Prime Lending Rate, and Third-Party Funds on Profitability of Commercial Banks in Indonesia, With Liquidity as Intervening Variable

Analysis of Capital Adequacy Ratio, Prime Lending Rate, and Third-Party Funds on Profitability of Commercial Banks in Indonesia, With Liquidity as Intervening Variable

DIVERSIFIKASI KREDIT, MONITORING, DAN KINERJA PERBANKAN DI INDONESIA

ABSTRACT
 
 This study aims to determine the banking credit diversification strategy that can control credit risk and credit diversification can increase the profitability of banks in Indonesia. This study also aims to discuss the role of monitoring in the implementation of diversification and its impact on the performance of Indonesian banks.
 The theoretical benefits of this research contribute to banks, especially in evaluating banking diversification strategy policies. Is the credit diversification strategy can reduce credit risk and improve banking performance or vice versa. For customers / investors, this research is one of the information that can be considered in choosing a safe bank in terms of the level of credit risk and bank profitability.
 This research method uses descriptive qualitative analysis. The results of this study indicate that credit diversification is the right strategy applied to banks in Indonesia. The government needs to implement further policies that support the implementation of credit diversification, such as conducting credit analysis, monitoring and evaluation.

Pengaruh Islamicity Performance Index Terhadap Profitabilitas Bank Umum Syariah Indonesia Periode 2014-2018

This study focuses on the purpose of analyzing the effect of the Islamicity Performance Index which will be proxied by the Profit Sharing Ratio, Zakat Performing Ratio, Equitable Distribution Ratio and Islamic Income VS Non-Islamic Income Ratio on the profitability of Islamic Commercial Banks in Indonesia. This study uses 7 samples of Islamic commercial banks in Indonesia using the annual financial statements from the period 2014-2018. The sample in this study was selected using the Purposive Sampling Method. While the method used for data analysis in this study uses the Common Effect Model analysis panel data regression. The results of the analysis in this study indicate that the profit sharing ratio, equitable distribution ratio, and Islamic Income vs. non-Islamic Income variables have no effect on Return on Assets (ROA). As for the zakat variable Performing ratio has a positive and significant effect on Return on Assets (ROA).Keywords: Islamicity Performance Index, Profitability.

The Determinant Factors of Bank Profitability in Indonesia

Indonesian financial system is a bank based, where the banking system carries a vital role in the economy. That makes the profitability and the stability of the banking industry is essential to preserve economic growth. Therefore, it is critical to understand the determinant factors of bank profitability. The purpose of this study is to analyse the internal bank, external bank, as well as industry-specific determinant on bank profitability, that is measured using Return on Asset (ROA) and Return on Equity (ROE). The study will use a balanced panel data from 93 banks over the period 2015-2019 and utilize Fixed Effect-Generalised Least Square model to examine the relationship. This study finds that different factors affect banks’ ROA and ROE. It found that capital strength has a significant and positive correlation with ROA, but it does not have a significant correlation with ROE. Cost efficiency, as expected, has a substantial and negative correlation with both ROA and ROE. As for GDP growth, it has a significant and negative correlation with ROA, but it does not have a significant correlation with ROE. That likely caused by the increasing competition from the entry of foreign banks along with economic development. Finally, inflation has a significant and positive correlation with both ROA and ROE. Surprisingly, bank size and bank ownership do not have substantial correlation either with ROA or ROE. These results suggest that banks in Indonesia can enhance their profitability by increasing capital strength and improve cost efficiency.

Pengaruh Financing To Deposit Ratio (FDR), Risiko Pembiayaan, Kecukupan Modal, Dana Pihak Ketiga, Suku Bunga, dan Inflasi Terhadap Profitabilitas pada Bank Umum Syariah di Indonesia

This study aims to examine the effect of financing to deposit ratio (FDR), financing risk, capital adequacy, third-party funds, interest rates, and inflation on profitability of Islamic Commercial Banks in Indonesia. The independent variables used in this study are financing to deposit ratio (FDR), financing risk, capital adequacy, third-party funds, interest rates, and inflation. The dependent variable is the profitability that measured using the return on assets (ROA). The study population are 13 Islamic Commercial Banks that registered in the Financial Services Authorities and Indonesian Bank during 2013-2017. Determination of sample was made by applying purposive sampling method and obtaining the sample of 9 Islamic Commercial Banks. Analysis of data used is multiple regression with the help of SPSS version 20. The results showed that financing risk had a significant effect on profitability, while financing to deposit ratio (FDR), capital adequacy, third-party funds, interest rates, and inflation had no significant effect on profitability.

Pengaruh Kualitas Pengungkapan Good Corporate Governance, Leverage dan Firm Size terhadap Profitabilitas pada Bank Umum Syariah di Indonesia dan Malaysia

The objective of this study was to determine the effect of the quality of good corporate governance disclosure, leverage, and firm size on profitability of Islamic commercial banks in Indonesia and Malaysia. The data was obtained from the websites of each bank in the period 2011-2017 with a total sample of 16 Islamic commercial banks in Indonesia and Malaysia. The data analysis technique used in this study was panel data regression analysis. Based on the results of analysis and testing that examined the effect of Quality of Good Corporate Governance (GCG) Disclosure, Leverage, and Firm Size on Profitability on Islamic Commercial Banks in Indonesia and Malaysia registered in each WEB of Islamic banking in the 2011-2017 observation period. Then the empirical results were obtained as follows: The quality of disclosure of GCG did not affect the profitability of Islamic commercial bank inIndonesia and Malaysia, it was because companies find it difficult to understand and feel only to burden the company's finances and think that disclosure was not profitable for the company. Leverage did not affect profitability because the Islamic commercial banks in Indonesia and Malaysia had a mean (average) of leverage value for the period 2011-2017 of 7.36%, which means it is still a small category where the maximum leverage value is 150% and for finance companies is 600% . So that the leverage variables of each Indonesian and Malaysian Islamic banking had no effect on profitability. Meanwhile, firm size had an effect on the profitability of Indonesian and Malaysian Islamic banking, because the greater the company's assets could increase the value of profitability.

Implication of Capital Liquidity to the Profitability of Commercial Banks in Indonesia

This study aims to determine whether there are implications of liquidity core capital on the profitability of commercial banks book IV in 2012 - 2016 in Indonesia, other things also to know the magnitude of the influence of capital adequacy and liquidity on bank profitability. The variables to measure bank profitability are Loan to Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), and Return on Asset (ROA). The sample of this research is 5 banks in Indonesia from 2012 until 2016. This research method use multiple linear regression. The research hypothesis was tested using F-test statistic and T-test statistic. The analysis shows that CAR is proportional to ROA, but LDR is inversely proportional to ROA. LDR has a significant negative effect (with p-value 0.026) on ROA. If the LDR value is too high, it means that the bank does not have sufficient liquidity to cover its obligations to customers is Third Party Fund (TPF). Keywords: Implication, Capital Liquidity, Profitability, Commercial Banks DOI : 10.7176/RJFA/10-2-12

FAKTOR MACROECONOMIC DAN BANK SPESIFIC DETERMINAN DARI PROFITABILITAS BANK DI INDONESIA DENGAN PENERAPAN INTERNET BANKING

The purpose of this research is to use a linier regression model and analyze the effect of macroeconomic and bank spesific factors to profitability of banks in Indonesia considering the implementation of internet banking. Spesifically we analyze the performance different between banks with internet banking and non internet banking. We use data of 30 banks in Indonesia periode of 2008 until 2010.The result shows that macroeconomic and some of bank spesific factors also internet banking has a significant influence to banks profitability. The research also showed bank with internet banking has a better performance than non internet banking, mostly because the overall condition of the banks and that internet banking has been a complementary factor in bank service to their customer.Keywords: Internet banking, data panel, bank spesific, macroeconomic

Analisis pengaruh rasio kinerja keuangan terhadap profitabilitas bank pembiayaan rakyat syariah di indonesia

This research analyzes about the influence of financial performance ratio to profitability of Rural Bank of Sharia in Indonesia. Financial performance ratio variables are proxied by the Capital Adequacy Ratio (CAR), Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), and Operating Income Operating Expenses (BOPO). Profitability ratio is proxied with Return on Assets (ROA) and Return on Equity). The method used is Lin-Log Logarithm Transformation on Multiple Regression model. The results explain that the Capital Adequacy Ratio (CAR) ratio has no effect and the direction of negative moving relation to ROA and ROE. Non Performing Financing (NPF) and Financing to Deposit Ratio (FDR) ratios have a negative moving influence and direction towards ROA and ROE. Operating Expense and Operating Revenue Ratios have a significant influence. Direction of negative moving relation to Return on Assets (ROA) and positive to Return on Equity (ROE). This study found that the profitability of Sharia Rural Banks in Indonesia (BPRS) is influenced by the level of problem financing, proper allocation of financing, and the balance of operational efficiency.

THE EFFECT OF GOOD CORPORATE GOVERNANCE, CAPITAL ADEQUACY, LIQUIDITY AND NON-PERFORMING LOAN ON BANK PROFITABILITY IN INDONESIA

This study aims to examine the effect of Good Corporate Governance, capital adequacy, liquidity, and non-performing loans to bank profitability in Indonesia in 2008-2016. The independent variables in this study are Good Corporate Governance assessed by its inverse value, capital adequacy represented by Capital Adequacy Ratio, liquidity represented by Loan to Deposit Ratio, and non-performing loans represented by Non-Performing Loan. Dependent variable in this research is profitability represented by Return on Asset and Return on Equity. This present study uses firm size control variables proxied by logarithm natural total asset (LnTA). The samples of this study are 10 banks with the largest total assets in Indonesia. The researcher uses data from bank annual report in 2008-2016 published on the website of each bank. This research is examined by using multiple linier regression analysis technique. KEY WORDS Bank, loan, profitability, assets, Indonesia.

The Effect of Inflation, Bank Indonesia Rate, Non Performing Financing, and Costs of Operating Expenses to Operating Revenues on Profitability of Sharia Commercial Banks in Indonesia

The Banking Industry has a very important role in economic development in a country. Indonesia, which is the largest Muslim country in the world, certainly has excellent prospects for the development of the Sharia Banking Industry in the future. Therefore, the development of Sharia banks has slowed in recent years and the profitability of Sharia banks is also still below the ideal value. This study aims to determine the internal factors and external factors that influence the profitability of Sharia Commercial Banks from January 2012 to August 2017. The variables used in this study are ROA, Inflation, NPF, and OEOR. The data used is the aggregate data of all Sharia Commercial Banks registered at Bank Indonesia. Measurement of Statistical Descriptions, F-test, t-test, Correlation Coefficient, Determination Coefficient and Multiple Linear Regression using IBM SPSS 21 software. The results showed that there were significant negative effects of the variable BI rate, NPF, and OEOR while the Inflation variable showed a negative but insignificant effect. Overall the above variables affect ROA by 87.7% while 12.3% is likely to be influenced by other factors.

Efficiency and Profitability of Islamic Banks in Indonesia

Efficiency and Profitability of Islamic Banks in Indonesia

The Prime Lending Rate and Profitability of Regional Banks in Indonesia

The Prime Lending Rate and Profitability of Regional Banks in Indonesia

Internal Determinants of Commercial Bank Profitability In Indonesia

Abstract Internal determinants of bank profitability can be defined as those factors that are influenced by the bank’s management decisions and policy objectives. This paper is aimed to examine the internal factors that impact on commercial banks profitability in Indonesia. The factors reviewed in the model namely capital adequacy, credit risk (non-performing loan), liquidity (loans to deposit ratio), net interest margin and operating efficiency (operating expenses to operating income ratio). Using purposive sampling method, the analysis used thirty three commercial banks, with 168 observations for the period 2010 to 2015. Based on the Chow-test, the common effect model was preferred. The model is estimated using Ordinary Least Squares method. The results revealed that two hypotheses were not be accepted. There are no significant effects of capital adequacy and credit risk on profitability, but the model explains that there are significant effects of all explanatory variables toward commercial bank profitability. However, other important internal determinants of bank profitability still have not included in the model of this paper.

Pengaruh Total Aktiva, Capital Adequacy Ratio (CAR), Finance To Deposit Ratio (FDR) Dan Non Performing Financing (NPF) Terhadap Return On Assets (ROA) Bank Umum Syariah Di Indonesia Periode 2010-2014

The purpose of this study is to analyze the impact of the variables firm size, liquidity, capital adequacy and financing fraud on Sharia Bank profitability in Indonesia by January 2010 until December 2014 period. Research using purposive sampling method for taking samples. Data obtained based on Bank of Indonesia published via Website realtime, obtained 60 samples.Research variables consisted of four independent variables and 1 dependent variable. Data analysing technique to answer research problem and examine research hypothesis using Double Linear Regression Analysis that supported by SPSS Statistics version 20 application.Based on the research, known that the effect of firm size (asset total), Liquidity (FDR), financing fraud (NPF) on Sharia Bank profitability partially significant. Meanwhile, the effect of capital adequacy (CAR) on Sharia Bank profitability not too significant.

Credit Risk, Market Risk, Operational Risk and Liquidity Risk on Profitability of Banks in Indonesia

This study examines the effect of credit risk, market risk, operational risk, and liquidity risk on profitability of banks listed on the Indonesia Stock Exchange in 2010-2014. The method used is descriptive and verification methods, with a sample of 30 banks and using multiple regression analysis. The results showed that credit risk does not partially affect profitability. Market risk, operational risk, and liquidity risk partially have positive effect on profitability. It simultaneously shows that credit risk, market risk, operational risk and liquidity risk have effect on the profitability of banks amounted to 67.1%. Improvement of Non-Performing Loan, Net Interest Margin, Operating Expenses to Operating Income Ratio, and Loan to Deposit Ratio will increase the Profitability.

FAKTOR-FAKTOR YANG MEMPENGARUHI TINGKAT PROFITABILITAS PERBANKAN SYARIAH DI INDONESIA (Studi Kasus pada Bank Umum Syariah di Indonesia Tahun 2009 –2012)

Research on financial ratios and its effect to the profitability of banks in Indonesia have been carried out by several researchers, but research results are inconsistent. Profitability has essential means for long-term survival of banking business, because the profitability of the business showed good prospects in the future. This study intends to examine the effect of CAR, FDR, NPF, ROA, and ROA REO against Islamic bank in Indonesia. This explanatory research was conducted at the Islamic Commercial Bank at Bank Indonesia. Data collection was carried out inthe documentation, in the form of financial ratios data from the financial statements of Islamic Banks gained per month of Islamic Commercial Bank Statistical Report published by Bank Indonesia in 2009-2012. The samples are 48 financial ratios of data taken by purposive sampling. Descriptive statistics are used to see an overview of researchdata individually, and multiple linear regression was used to test the hypothesis, where the previous requirement that the classical assumptions include normality, multicollinearity, heteroscedasticity, and autocorrelation have been fulfilled. The results of multiple linear regression showed the CAR regression coefficient on ROA is 0.026 withp = 0.024; FDR regression coefficient on ROA is 0.009 with p = 0.007; NPF on ROA regression coefficient is 0.042 with p = 0.368, regression coefficient on ROA REO by -1.53 with p = 0.000, and the regression coefficient on ROA ROA of -0.029 with p = 0.000. The test results demonstrate F value 17.893 with p = 0.000, and the test results adjusted R2 0.642 shows the explanatory power of the five independent variables in this study was 64.2% on ROA; remaining 35.8% is influenced by other factors are not included in the regression model. Concluded that partially CAR and FDR, respectively have a positive and significant effect to ROA, whereas BOPO and REO have a negative and significant effect to ROA, but NPF have no significant effect on ROA.

PENGARUH TINGKAT KECUKUPAN MODAL TERHADAP PROFITABILITAS DENGAN RISIKO KREDIT SEBAGAI VARIABEL PEMODERASI

This study analyzed the influence of bank capital adequacy level to profitability by using credit risk as moderating variable. The data used in this study is conventional banking listed on the IDX period 2011- 2014.The results of this study indicate that the capital adequacy does not affect the profitability, credit risk negatively affect profitability and credit risk can not moderate the influence of capital adequacy rate on bank profitability in Indonesia.

PENINGKATAN PROFITABILITAS SERTA PENGARUH DANA SYIRKAH TEMPORER, KEWAJIBAN DAN EKUITAS DENGAN VARIABEL RISIKO PEMBIAYAAN SEBAGAI ANTISEDEN (STUDI PADA PERBANKAN SYARIAH DI INDONESIA)

The purpose of this study is the effect of temporary syirkah funds, liabilities and equity of the financing risk and profitability of Islamic banks in Indonesia; analysis of effect financing risk on profitability. The population is Islamic bank in Indonesia. The sample was selected using purposive sampling method. Observation number 11 bank research. Method of data analysis used the path analysis. Results of this study indicate that the fund temporary syirkah positive significant effect on the risk of financing received. The more the amount of funds held temporary syirkah the risk of non-performing loans to finance or Islamic banks NPF indicator becomes smaller. Obligations positive significant effect on the risk of financing. The larger a bank's liabilities, the risk of non-performing loans to the financing or NPF indicator will also be greater. no significant effect on the risk of financing. This means that the level of equity had no impact on the level of financing risk. Fund temporary syirkah positive significant effect on profitability. Obligations positive significant effect on profitability. Debt obligations or received will indirectly increase the amount of income. Equity does not significantly influence the risk of financing. This means that the size of the equity has no effect on the level of profitability and ROA indicators received by commercial banks financing syariah.Risiko significant negative effect on profitability. Conclusion the study shows that the temporary syirkah funds and liabilities have a significant effect on the risk of equity financing and profitability while no significant effect on risk financing and profitability.