Performance Of Banks In Indonesia Research Articles

Pengaruh makro ekonomi dan fundamental perusahaan terhadap kinerja perbankan syariah di Indonesia

Purpose: To find out the influence of macroeconomic and company fundamentals on sharia banking performance in Indonesia. Research Methodology: The regression test was used to analyze the monthly data of BI, BPS, and OJK in 2014-2018. Independent variable of macroeconomic was proxied by inflation, exchange rate, GDP; corporate fundamentals by CAR, FDR, BOPO, NPF, DPK; while performance as dependent variable by ROA. Results: Inflation and BOPO negatively and significantly influence ROA; while the exchange rate, GDP, CAR, NPF, DPK, FDR are not significant. Limitations: This research was conducted in the Islamic banking industry in Indonesia by using the variables of the company fundamentals and macroeconomics. Contribution: This research is useful for policy-making and research of sharia banking in Indonesia. Keywords: Performance, Macroeconomics, Corporate fundamentals

Effect of Market Structure and Financial Characteristics on Bank Performance in Indonesia

Purpose of this study is to obtain empirical evidence of the influence of market structure as measured by the Herfindahl-Hirschman Index (HHI) and Lerner Index, financial characteristics measured by capital, bank size on bank performance. The research sample is a Conventional Commercial Bank that has a minimum core capital of Rp. 5,000,000,000,000 and publishes financial statements in full during 2011-2018. Data analysis techniques in this study are panel data regression. The results showed that the Herfindahl-Hirschman Index proved to have a negative and significant influence on bank performance. The higher the Herfindahl-Hirschman Index shows the market structure that leads to a monopoly structure so that in general it will have an impact on decreasing bank performance. The Lerner Index proved to have a positive and significant influence on bank performance. It shows that when the monopoly power of individual banks increases, it will have an impact on the mastery of sources and assets owned by banks, which in turn will have an impact on increasing bank performance. Bank size and Capital proved to have a positive and significant influence on Bank performance.

Implementation of Islamic Work Values in Realizing Sharia Good Corporate Governance and Its Implications in Stakeholders Oriented Values (SOV) and Financial Performance of Islamic Banking in Indonesia

This research examines the effect of Islamic work values on sharia good corporate governance (GCG), and its implications for stakeholders oriented values (SOV) and Islamic banking financial performance in Indonesia. The method of analysis uses Structural Equation Modeling (SEM) with a partial least square (PLS) test. The sample of this study is Islamic banking with an analysis unit of 8 Islamic Commercial Banks in Indonesia. The sampling technique uses a sampling method randomly. The results of the study show that Islamic work values positively influence SOV. Likewise, Islamic work values have a positive effect on sharia GCG. While Islamic work values have no positive effect on sharia GCG and have no implications for SOV. Likewise, Islamic work values do not have a positive effect on financial performance. While Islamic work values have a positive and significant effect on sharia GCG and have implications for financial performance. Islamic work values, combined with sharia GCG, are still oriented to shareholders. For Islamic banking, the GCG model adopted in Indonesia refers to the Continental European model, which is still oriented to shareholders. High moral commitment is needed to implement Islamic work values and Islamic GCG so that it can have implications for the interests of stakeholders. For regulators, GCG reforms need to consider specific business, legal, and social societies so that the objectives of sharia GCG can be achieved optimally.

The Performance of Banks in Indonesia Based on Capital Perspective (BUKU), a case Study in a period of Decline in Profitability Performance

This study aims to analyze and obtain empirical evidence regarding the effect of LDR on bank’s profitability, and the variables that can moderate the influence of LDR on ROA. The object of this research is banks listed on the Indonesia Stock Exchange for the period of 2013 to 2016. 25 banks were selected using the purposive sampling method. The research object was divided into two categories, namely BUKU 1 and BUKU 2 banks, and BUKU 3 and BUKU 4 banks. The results showed that BUKU 1 and BUKU 2 banks were influenced by LDR and BI rate.Then, it moderated by OEOI. The study does not support the hypothesis that the NPL and NIM of BUKU 1 and BUKU 2 banks can moderate the influence of the LDR variable on ROA.While the influence of LDR on ROA of BUKU 3 and BUKU 4 banks was moderated by NIM and OEOI.The study does not support the hypothesis that the NPL of BUKU 3 and BUKU 4 banks can moderate the influence of the LDR variable on ROA.This study also supports the statement that the BI rate gives more influence to BUKU 1 and BUKU 2 banks than banks in the BUKU 3 and BUKU 4 categories.

Analysis of Islamic Banking Market Structure in Indonesia with Panzar-Rosse Model Approach

The purpose in this study is to determine and analyze the market structure of the Islamic banking industry in Indonesia according to the Panzar-Rosse model and the level of competition between Islamic banking industry in Indonesia. To find out the market structure of the islamic banking industry it must be analyzed the effect of EAR, NPF, BOPO, FAR, FS, PL, PFF, PCE on the performance of Islamic banking as measured by ROA. The data used to answer and achieve these objectives is used secondary data from Islamic banks in Indonesia which has the largest asset ratings for a period of 6 years using the selected panel data method on the basis of Tests. The analysis model related to market structure uses the Panzar-Rosse model by looking for the H-statistic value and identified the Islamic banking equilibrium test on the panel data model of the performance of bank in Indonesia. This study found that the performance of Islamic banking measured by ROA simultaneously affected EAR, NPF, BOPO, FAR and FS and Panzar-Rosse approach will produce H-Stat value which is the sum of three main coefficients ofbanking inputs (labor, capital and funds). With H-Stat valued at 0.735 can be concludedthat the islamic banking industry in indonesia into the category of monopolistic market.The levels of the Islamic banking industry of Bank BNI, Bank BRI, Bank Panin and Bank Bukopin are monopolistic market while Bank Muamalat and Bank Mandiri are directed towards a joint monopoly market in the position of long-term equilibrium.

MEKANISME ISLAMIC CORPORATE GOVERNANCE PADA KINERJA BANK UMUM SYARIAH MENGGUNAKAN ISLAMIC PERFORMANCE INDEX

This study examine how Islamic Corporate Governance mechanism which are : a number of sharia supervisory board meeting, independent directors, a number of audit committee meeting has an effect to the Islamic Bank performance in Indonesia which meassured by Islamic Performance Index, which proxy by : Profit sharing ratio (PSR), Islamic Income Ratio (IIR) and Equitable Distribution Ratio (EDR).� The sample selection method is purposive sampling and obtained 9 Islamic bank in 5 years period observation with 45 data are being sampled.� Multiple regression analysis is used to analyze the data.� The results shows that a number of DPS meeting have a negative effect �to PSR&EDR, however positive effect showed for IIR.� Then, independent directors have a negative effect to the PSR and IIR, however it has positive effect for EDR. As well as, negative effect showed by a number of audit committee meeting to PSR and IIR, while a number of audit committee meeting have positive effect for EDR. However the analysis result show that there are no significant effect from independent variable to the Islamic Bank performance which measured by Islamic Performance Index.Keyword:� A number of Sharia Supervisory Board meetings, Independent Directors, a number of audit committee meeting, Islamic Bank Performance.

Corporate Governance, Earnings Management dan Kinerja Perbankan di Indonesia

ABSTRACT The purpose of this research is to investigate the concept of the importance of the role of good corporate governance in the banking industry in Indonesia. Specifically, this study intends to examine whether good corporate governance plays a role in improving company performance, especially by limiting earnings management practices. This study focuses on banking companies in Indonesia that are listed on the Indonesia Stock Exchange (IDX). Determination of company samples in this study was carried out by purposive sampling method, with the criteria of banking companies listed on the Indonesia Stock Exchange during the 2014-2016 period. The data collection method used in this study was the method of documentation study. The data analysis method used is Path Analysis.The results of the Square Multiple Correlation for earnings management amounted to 0.795 and banking performance was 0.860, so for earnings management variables influenced by managerial ownership, institutional ownership, the size of the independent board of commissioners, the audit committee amounted to 79.5%. While banking performance variables are influenced by managerial ownership, institutional ownership, board of commissioners size, the proportion of independent commissioners, audit committees and earnings management is 86%. Empirical benefits in research are about the application of corporate governance, earnings management and financial performance in the banking industry in Indonesia. The practical benefits in this study can provide benefits for companies in the application of appropriate corporate governance and benefits for investors who invest their capital in the company and can also be taken into consideration for companies to reduce profit management in the company so as to improve banking performance in Indonesia.

Market structure and Islamic banking performance in Indonesia: An error correction model

Market structure and Islamic banking performance in Indonesia: An error correction model

The Effect of Company Reputation and Business Strategy on Company Performance of Banking Industry in Indonesia

The number of offices and assets of go-public banking has increased, but their performance has grown unstable. The condition is allegedly related to the issues of business strategy and company reputation. Hence, this study aims to examine the influence of company reputation and business strategy on banking performance in Indonesia. The research uses quantitative research approach on unit of analysis national banking that has been go-public. So the population in this study is all national banks including government, private, and foreign owned which have been go-public. The process of observation is cross section / one shot, ie in 2017. The primary data is obtained through questionnaire towards 43 go-public banks conducted by a census. Analysis of causality to answer the purpose of research, use Partial Least Square (PLS). The results show that the company's reputation and business strategy significantly affect the performance of banking companies in Indonesia either simultaneously or partially. Partially, business strategy is more dominant in affecting company performance than company reputation.

PENGARUH PENILAIAN KESEHATAN BANK TERHADAP KINERJA KEUANGAN BANK SYARIAH DI INDONESIA

This study aims to provide empirical evidence about the effect of bank soundness by using Risk Profile, Good Corporate Governance, Earnings, Capital (RGEC) methods on the financial performance of sharia commercial banks in Indonesia. The formulation of the problem in this research is whether there is an effect of the soundness of the Islamic Commercial Bank with the RGEC method with the banking performance in Indonesia in the 2011-2015 period? How much influence does the bank's health level have on the RGEC method on the performance of Islamic Banks in Indonesia? The research sample consisted of 7 Islamic banks in Indonesia. The data used are quarterly financial statements of sharia commercial banks and GCG implementation reports. The statistical method used to test the research hypothesis is multiple linear regression. The results of data testing stated that there was no heterocedasticity, autocorrelation, multicollinearity, and data with normal distribution. The results showed that Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), Net Operating Margin (NOM) and Capital Adequacy Ratio (CAR) had an influence on the financial performance of Islamic commercial banks, while Good Corporate Governance (GCG) did not have influence on the financial performance of Islamic commercial banks. The effect of bank soundness on the financial performance of Islamic banks was 39.40%, while 60.60% was influenced by other factors outside this study.

Model and Financial Performance: Panel Data in Causality and Cointegration Test

This paper aims to analyze the interaction between financial performance variables and bankruptcy status of companies in the banking industry in Indonesia. This study used the test of causality and cointegration of panel data for variable bankruptcy status and variable of financial performance among others (variable of NPL, ROA, CAR, NIM, SIZE, GROWTH, LEVERAGE) at 43 banks listed on BEI during 2010-2016 financial reporting period. From the research conducted in the findings that between the status of bankruptcy and variable financial performance of banks in Indonesia are only a few variables that have a two-way relationship, this is seen in the test results of causality lags 1, using lags 5, 10 and 15 this causal relationship is getting smaller . However, cointegration has been confirmed by using lags 1-1 to 1-4 lags interval premises, there are 7 variables that in each cointegrated each other.

How does board diversity affect the financial performance of commercial banks in indonesia? An inquiry

This study analyzes board diversity and its effect on financial performance, as measured by age, gender, and nationality of board members using a sample of nine (9) commercial banks in Cikarang, West Java, Indonesia. The study uses multiple linear regression analysis. The results show that age and nationality have significant effect, while gender has insignificant effect on financial performance. However, simultaneously all of the independent variables significantly affect the Return on Asset, with the coefficient determinant in this research is 20.8%.

PENGARUH TINGKAT BI RATE DAN GDP (GROSS DOMESTIC PRODUCT) TERHADAP KINERJA BISNIS DAN SOSIAL PERBANKAN SYARIAH DI INDONESIA DENGAN KONSEP RISK MANAJEMEN DAN KECUKUPAN MODAL SEBAGAI VARIABEL INTERVENING

The industry in Indonesia that survives the crisis in 2008 is sharia banking. In fact, the growth performance of Islamic banking financing remained high until February 2009 position with good performance. Therefore, the purpose of this study is to analyze the effect of BI Rate and Gross Domestic Product on Sharia Banking Performance in Indonesia. This research is descriptive research with quantitative method. The population in this study were Bank Indonesia, Central Bureau of Statistics, and Sharia Banking registered at Bank Indonesia in 2010-2015. For Syariah Banking, the sample is taken by purposive sampling. The type of data used in this study is secondary data. Data analysis used were: Normality test, Multicolinearity test of Heteroskedastity test, Linearity test, Autometeration test, Path Analysis, and t test. The results of this study illustrate that BI rate has indirectly affect the ZPR through NPF with a ttest of -2.07, and GDP indirectly affect the ZPR through CAR with a ttest of 17.569.

Ownership structure and bank performance

The purpose of this study is to evaluate the performance of banks in Indonesia. Specifically, this study has examined the static effect of ownership structure on bank performance in Indonesia over the period 1995–2006. The sample consists of 74 banks, namely 56 private banks, 15 community development banks (BPD), and three federal banks from 1995 to 2006. The data was analyzed using least-squares regression method, the general least squares method, and the method of random effects. The findings of this study show that the BPD performed better compared to private banks. This indicates that BPDs have better performance rather than private banks which is due to the fact that customers can be able to pay loans, they have special knowledge on that area and the performance of BPD is supervised by local government. In addition, the amount of equity, economic growth, financial crisis, and the financial ratios affect the performance of the bank. However, bank status has no effect on bank performance.

Kinerja Keuangan Berbasis Shari’ate Value Added Approach: Komparasi Antara Bank Umum Sharia dan Unit Usaha Sharia di Indonesia

This study aims to measure the financial performance of Islamic banking in Indonesia using Sharia Value Added Approach. In specific, objectives of this study is comparing financial performance between Islamic banking (sharia commercial banking) and sharia busness unit that measure using shari’ate value added approach. The object of this study is islamic banking covers Islamic Banking and Sharia Business Unit, with research period is 2010-2015. Sample selection using purposive sampling mehod. Financial performance was measued in this study is Return on Asset (ROA), Return on Equity (ROE), Net Profit to Productive Asset (NPPA), and Net Profit Margin (NPM). The result of this study shows that financial performance of Islamic banking is healty. There are a significant difference of ROA, ROE, and NPPA between sharia commercial banking and sharia business unit that measure using income statement approach and using sharia value added statement approach. But, NPM is not. The result of this study provides a significant contribution to developing Sharia Enterprise Theory. For manager of Islamic banking, Bank Indonesia and Sharia Financial Standard Board, the result of study can used to create policies related to measurement of Islamic Banking performance.Keywords: financial performance, shari’ate value added approach, Islamic banking, sharia business unit

THE INFLUENCE OF FINANCIAL PERFORMANCES ON INDONESIA’S STATE-OWNED BANKS TOWARDS SHARE RETURNS IN 2013-2016

The performance of financial statements shows the level of productivity in a company. Specific to banking sector, the performance of its financial statements can be analyzed from Economic Value Added (EVA) and Market Value Added (MVA). This study analyzes MVA and EVA are of state-owned banks consisting of Bank Tabungan Negara (BTN), Bank Negara Indonesia (BNI), Bank Mandiri and Bank Rakyat Indonesia (BRI). The results convey that Indonesia’s state-owned banks in giving share return to theirs shareholders are not influenced by Economic Value Added (EVA) and Market Value Added (MVA). There is an evidence that, EVA and MVA do not give any effect to share return because in the state owned bank in Indonesia, the investors have been very confident about the performance of banks in Indonesia so that without seeing the performance of the financial statements of investors have been very convinced from the fundamental point that the Indonesia state owned banks can bring benefits to investors

Reexamine performance of foreign banks in Indonesia

Reexamine performance of foreign banks in Indonesia

Analysis of the Performance of National Foreign Exchange Bank in Indonesia

Analysis of the Performance of National Foreign Exchange Bank in Indonesia

Re-examine Performance of Foreign Banks in Indonesia

We reexamine the performance of multiple definitions of foreign banks in Indonesia over the period of September 2005-December 2013 in a monthly dataset. We use a number of definitions of foreign banks which are branches and subsidiaries of foreign banks (BSFB), joint venture banks (JVB) and domestic banks acquired by foreign investors (DBAFI). Unbalanced panel data estimation, more particular random effect, is employed to examine our hypothesis. We find that BSFB have a higher performance than other banks. However, little evidence is revealed for the joint venture and acquired banks. Encouraging banks, more particular domestic banks, to be more efficient should be bolstered by the regulators to lead them to be more profitable and competitive.

Influence of External Forces on Bank Recapitalization

Purpose: This paper provides evidence of the influence of selected external forces during the banking crises on the recapitalized performance of banks in Indonesia, Malaysia and Thailand in the IMT-GT economic region. 
 Methodology: The study covers a period of 19 years from 1997 to 2015 across 45 commercial banks. The data was collected from the World Bank database and the global economy website.
 Results: Although the strategy of capital injection used to strengthen the capital position of the banks proved positively significant, the results showed GDP, Inflation and Political Stability Index had different impact on the recapitalized banks' performance in these three countries. The overall results appears to indicate that external forces have higher impact on Indonesia banks compared to Thailand and Malaysian banks over the study period.
 Implications: This study recommend recapitalize banks to efficiently utilize their enlarged capital base to expand their lending activities and investment to real sectors in order to generate higher economic growth for the IMT-GT region.