Ability Of Banks Research Articles

Implementation of a Business Intelligence Model for Analysis Banking and Credit Management

The 2008 global financial crisis affected the pace of the economy by reducing the level of public trust in banks. Seeing these conditions, Bank XYZ needs to know and analyze the factors that influence bank lending. Debtor data processing at Bank XYZ is well integrated, but in fact, Bank XYZ still needs to pay attention to the principle of prudence in making decisions to provide credit facilities to debtors with minimal risk so that credit can be extended consistently and based on sound credit principles. In monitoring and analyzing the credit system at Bank XYZ, there is one factor that serves as a reference for measuring a bank's ability to bear the risk of credit failure by debtors through NPLs (non-performing loans). In addition to NPLs, the growth in the number of debtors, the amount of credit disbursement, the amount of outstanding credit provided in various sectors, and the amount of collectibility of debtors also play an important role in decision-making by management; therefore, the author proposes a business intelligence model to analyze credit data at XYZ Bank in the form of data visualization in dashboard form. The dashboard was built using the Tablue for Students software. The results of this study are a business intelligence model in the form of a dashboard application to be able to monitor debtor data growth, analyze loans extended in various economic sectors, and analyze outstanding loans using the NPL value as a reference based on credit quality as a decision support tool.

Effect of LDR, NPL, CAR on Return on Asset of Conventional National Commercial Bank in Indonesia

Every effort to increase company profits impacts the prosperity of investors as owners. Profit optimization involves aligning assets, particularly in banking, where key factors influencing profits include the bank's ability to allocate funds as credit and the management's proficiency in handling loans to maintain collectibility and ensure sufficient capital. Loan distribution is measured using the Loan to Deposit Ratio (LDR), while effective credit management is gauged by Non-Performance Loans (NPL). The adequacy of minimum capital provision is assessed by the Capital Adequacy Ratio (CAR). This study aims to demonstrate the influence of LDR, NPL, and CAR on Return on Assets (ROA) during the 2017-2021 period in Indonesian national commercial banks. Purposive sampling selects a representative sample, and linear regression is employed to analyze the variables' impact. The research findings indicate that LDR and NPL have a significant effect on ROA, while CAR does not.

The Influence of Third-party Funds; Asset Quality, Profit, and Lost Sharing to The Islamic Bank Liquidity in Indonesia

During the COVID-19 pandemic, Islamic commercial banks experienced liquidity excess due to the third-party funds that increased and the weak distribution of financing by Islamic banks. In addition, the asset quality of Islamic banks is showing good development, this will affect the bank's ability to meet sufficient liquidity. This study uses 7 Islamic commercial banks as a sample from a population of 14 Islamic commercial banks registered in the Financial Services Authority (OJK) from March 2012 to December 2020 (quarterly data) period. This research method uses a fixed-effect model, with a GLS weight approach, Cross-section SUR. The results of this study are third party funds, asset quality (Non-Performing Financing), and Capital Adequacy Ratio have a significant effect on the liquidity of Islamic banks, while Profit and Loss Sharing and Return on Assets do not affect the liquidity of Islamic banks.

Bank stability, Covid-19, and Islamic bank financing in Indonesia

The financial performance of Islamic banks is strongly influenced by the bank's ability to disburse their funds. The purpose of this study is to analyze the influence of Islamic bank fundamentals in influencing financing. Islamic bank fundamentals consist of stability, size, profitability, equity, efficiency, and financing risk. This study uses quarterly data to examine 13 Islamic commercial banks from 2014 to 2020. The method used is static panel data regression with unbalanced panel data of 334 observations. The results show that the Z-score, assets, ROA, and NPF have a positive effect on the financing of Islamic commercial banks. Meanwhile, the CAR and income cost ratio has a negative effect on the financing of Islamic commercial banks. Furthermore, the economic slowdown because of Covid-19 has reduced Islamic commercial bank financing. These findings indicate that profit, bank size, and stability are the main Islamic bank fundamentals that significantly influence the amount of Islamic bank financing.

Analisis Kesehatan Bank Dengan Metode RGEC Pada Bank Yang Terdfatar Di Bursa Efek Indonesia Periode 2019-2021

Bank health is the bank's ability to regularly carry out banking activities and fulfill its responsibilities in accordance with Bank Indonesia Regulation No. 13/1/PBI/2011. To assess the health of the bank using the Risk profile, Good Corporate Governance, Earnings, and Capital (RGEC) method which uses measurements of non-performing loans (NPL), loan to deposit ratio (LDR), Good Corporate Governance (GCG), return on assets (ROA), return on equity (ROE), operating expenses to operating income, and capital adequacy ratio (CAR). This research uses a quantitative descriptive approach, this study uses a causal design or causal relationship. To determine the soundness level of a bank, there is a matrix of determining criteria for each variable. The criteria for this determination are based on Bank Indonesia Circular No. 13/24/DPNP of 2011. The data source for this study uses conventional banking secondary data at banks listed on the Indonesia Stock Exchange for the 2019-2021 period. The sample was determined as many as 78 observations. From the results of the research that has been done, it can be concluded that there are banks that have conditions of "Very Healthy, Healthy, Fairly Healthy and Less Healthy". Banks that have "Unhealthy" conditions, namely PT Bank Ganesha Tbk (BGTG) in 2021. There are 6 banks that have "Quite Healthy" conditions which include PT Bank Amar Indonesia Tbk (AMAR) in 2020 and 2021, PT Bank MNC Internasional Tbk (BABP) in 2019 and 2020, PT Bank Tabungan Negara Tbk (BBTN) in 2019, PT Bank Ganesha Tbk (BGTG) in 2020, PT Bank Ina Perdana Tbk (BINA) in 2019 to 2021, PT Bank Pembangunan Daerah Jawa Timur Tbk (BJTM) in 2021. Only PT Bank OCBC NISP Tbk has a "Very Healthy" condition in 2020. While the rest are banks with a "Healthy" condition

IDENTIFIKASI FAKTOR PENENTU PROFITABILITAS BPR KONVENSIONAL DI PROVINSI BALI

Profitability is the bank's ability to gain profits which can show good bank performance. The purpose of this study was to determine the effect of capital adequacy, credit risk and liquidity risk on BPR profitability with a sample of 47 BPRs for the 2017-2021 period. The analysis technique in this study used multiple linear regression analysis techniques. Based on the test results that have been carried out, capital adequacy (X1) and credit risk (X2) have a negative effect on BPR profitability and liquidity risk (X2) has a positive effect on BPR profitability in the Province of Bali. The implication of this research is that BPR’s determine the appropriate lending ceiling based on capital considerations that can later have an impact on BPR profitability.

The Relevance of Internal Control System on Money Laundering in Jordanian Islamic and Commercial Banks

Purpose: This study seeks to determine whether internal control systems are important for preventing money laundering in Islamic and commercial banks in Jordan. It seeks to clarify the procedures and means for evaluating the internal control systems, identify the extent of their application, and determine their impact on reducing money laundering in banks. Theoretical framework: Money laundering is a significant criminal activity that has serious economic and social impacts. Despite anti-money laundering legislation and emphasis on internal controls, money laundering remains a pervasive problem in the financial industry. Effective internal controls can help prevent errors, manipulation, and fraud that facilitate money laundering, thereby preventing crime and ensuring market competitiveness. Design/methodology/approach: As part of the study, interviews were conducted using a qualitative methodology. It was essential that those selected for interviews work in a controlling position or department in banks. All facets of the internal control framework are covered in the interview questions. Findings: Internal control has a positive impact on preventing money laundering in banks, and control activities are critical in preventing money laundering operations. The quality of information obtained and distributed by banks, along with channels for distributing information, are factors in improving a bank's ability to combat money laundering. Research, Practical & Social implications: The study has practical and social implications in determining characteristics that affect the efficacy of anti-money laundering actions, which can aid in drastically reducing money laundering. Originality/value: The study adds to what is already known about anti-money laundering initiatives and how well they work to stop money laundering in Islamic and Commercial banks. Its investigation of the effects of information and communication on developing effective internal control systems to prevent money laundering gives it originality and value. Additionally, it creates new opportunities for future study into how well internal control procedures work to lessen money laundering in various contexts and nations.

THE EFFECT OF NON-PERFORMING LOANS AND LOAN DEPOSIT RATIOS ON STOCK RETURNS IS MEDIATED BY A PROFITABILITY STUDY ON COMMERCIAL BANKS LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE PERIOD 2016 - 2018

Stock return is an indicator of banking performance in Indonesia. This study aims to empirically test non-performing loans and loan deposit ratios on stock returns mediated by return on assets at commercial banks listed on the Indonesian stock exchange in 2016-2018. The sample used in this study was 20 bank companies that met predetermined criteria. The data that has been collected is then analyzed using Path analysis to test the proposed hypothesis. The findings of this study indicate that non-performing loans and loan deposit ratios each have a significant effect on stock returns and are mediated by return on assets. Based on these findings, it is recommended that banking companies, in managing financial ratios, must run more optimally to maximize stock returns obtained by banks. Non-performing loan, loan deposit ratio is a bank's financial ratio to assess its performance. These financial ratios have a purpose to determine the bank's ability to optimize the level of lending to the public, generate profits from the activities carried out and reject the risks from its operational activities. For banking companies, the findings of this study can be used in policy-making related to the delivery of information on bank performance reports to investors.

Internal Factors Affecting the NPL of State-Owned Commercial Banks

Banking in Indonesia generally relies on loan interest income as the primary income in financing its operations. Not all credit extended is risk-free; some have sizable risks and can threaten the bank’s health. So to measure a bank's ability to overcome failure to take credit from debtors, the NPL ratio can be used. This study aims to analyse the influence of internal factors, namely: CAR, LDR, NIM, and OEOI, on NPLs of State-Owned Commercial Banks during 2015-2022. The research was conducted using a qualitative descriptive method with panel data using the financial statements of Bank BRI, Bank BNI, Bank Mandiri, and Bank BTN during 2015 - 2022. The results of this study indicate that CAR and BOPO have a significant positive effect on NPL, while LDR and NIM have a significant negative effect on NPL.

Faktor faktor yang mempengaruhi profitabilitas pada BPRS Serambi Mekah Kota Langsa

Bank is a financial institution that aims to make a profit. This profit is obtained from the management of funds from the community. Profitability is the bank's ability to generate / earn profits as measured by the ROA ratio. Return On Assets (ROA) is one way to measure the level of a bank's ability to make a profit. This study aims to examine profitability which is influenced by Earning Assets, Operating Income, Operational Expenses, and Profit Sharing for Fund Owners at PT BPRS Seurambi Mekah Kota Langsa. In this study using quantitative data because it analyzes data in the form of numbers / numerics. Data obtained based on the publication of Annual Bank, the analysis technique used is multiple linear regression analysis. The results of this study found that Productive Activities and Operational Expenses have a significant effect on profitability, and profit sharing on fund owners has no significant effect on profitability.

The Effect of Return, Cost, Financing Factors and Risk on Profitability of Sharia Banks in Indonesia

Some of the factors identified as influencing the profitability of Islamic banks include asset growth, volume of financing, low non-performing financing ratios, optimal financing distribution, large income spreads, low-cost funds, professional internal management, prudential principles in channeling financing, and several other factors that have an influence on the profitability of Islamic banking. This research is explanatory research (explanative research). Explanatory research seeks to explain the causal relationship between variables by testing hypotheses. The purpose of this research is to test the proposed hypothesis regarding the influence of the firm's fundamental variables on sharia stock prices as the dependent variable. This research is also quantitative. The quantitative approach is research related to quantitative data in the form of numbers that can be used with mathematical operations (Muhamad, 2008: 203). This study uses time series data with monthly data from January 2022 to June 2022. The focus of the research is the condition of all Islamic banking in Indonesia. Partially, the financing deposit ratio (FDR) has a positive and significant influence on the profitability of Islamic banking. This shows that the FDR ratio has a direct effect on the profitability of Islamic banking, because the FDR ratio is a ratio that describes a bank's ability to channel financing, and also describes the bank's liquidity. If the FDR is <80%, the bank will be burdened by profit sharing to third parties and additional Minimum Statutory Reserves (GWM) to Bank Indonesia, so that profitability is not optimal. On the other hand, if the FDR > 100%, it indicates that the bank's liquidity is disrupted.

Impact Of Finance Technology On Profit At Sharia Banks In Bandung

Industry 4.0 is currently giving rise to an innovation in all fields. One of them is the financial services sector by combining application-based funding technology. Innovations in financial services that are currently trending related to access to financial products are known as Financial Technology (FinTech). The purpose of this study is to analyze whether there are differences in earnings before and after the existence of Financial Technology in Islamic Banks. The research method used is descriptive quantitative in the form of a comparison that aims to measure the influence before and after the existence of FinTech on Profits at Islamic Banks for the 2017-2020 period as measured by Net Interest Margin, the population of this study from financial statements which was then narrowed down using purposive sampling so that the sample in this study are the quarterly financial statements of Islamic banks for the period 2017-2020. The results of the study show that in Islamic banks there is no significant effect on the net interest margin before and after using fintech, this is due to several factors including the level of security, long-term maintenance and the bank's ability to maintain internet banking are also experiencing problems. The not yet maximal use of internet banking in Indonesia for banking transactions is also still an obstacle to the development of internet banking services.

Analisis Efisiensi Bank Umum Syariah di Indonesia (Studi Kasus Metode Stokastik Frontier)

The performance appraisal parameters of a bank are theoreticall can be seen from the level of efficiency of the bank. The efficiency of a bank will be identified from the bank's ability to produce maximum output with the most effective utilization of inputs. This study had analyzed the efficiency of Bank Umum Syariah (BUS) in Indonesia using the frontier stochastic method. The sample in the study was Bank Umum Syariah (BUS) in Indonesia with the research data analyzed in 2019 and 2020. The model used model fixes the model. The results of the analysis illustrate that Bank Umum Syariah (BUS) in Indonesia have a very good level of efficiency on inputs in the form of third party funds and labor costs with outputs in the form of financing. This study shows ROA, FDR and BOPO have a significant effect on efficiency both jointly and partially.

The Effectiveness of Corporate Governance and Whistleblowing System on Fraud Disclosure

There are increased corporate mechanisms for detecting fraud cases in financial institutions. This study aimed to investigate the impact of corporate governance and whistleblowing systems (WBS) on fraud disclosure. A multiple regression analysis was performed on 34 public banks listed on the Indonesia Stock Exchange (IDX) from 2016 to 2020. The findings showed that the bank's corporate governance rating significantly and negatively affects the disclosure of fraud. This implies that a better corporate governance rating increases the bank's ability to detect fraud. However, the increased violations reported through WBS mechanism did not indicate fraud following the investigation. Another finding showed that the potential for fraud in government-owned and large banks increases due to political intervention and conflicts of interest in business policymaking. Therefore, this study has practical implications for implementing a WBS in fraud violations in the banking sector.
 Keywords: fraud, corporate governance, whistleblowing system policy

Study on the Impact of Digital Finance on Non-Performing Loan Rate of Chinese Commercial Banks

Affected by COVID-19, global economic growth is in recession, geopolitical conflicts are continuing, commercial banks' credit risk is climbing and profitability is facing severe changes. There are new opportunities in the crisis. Recently, with the development of the digital economy, digital finance is increasingly used in commercial banks, which can better meet regulatory needs and information needs, and effectively improve the bank's ability to control risks. Based on the development of digital technology and commercial banks, we collect panel data from 30 provinces and cities from 2011-2020 and use a two-way fixed effects model to explore the impact of digital finance on commercial banks' NPL rate. The results show that modern technology can effectively suppress the credit risk of China’s commercial banks. In addition, due to the existence of financial exclusion and development differences between the east and west, there is a heterogeneity of fintech in different dimensions and power points in different regions. Based on the research results, we put forward relevant suggestions on how to create a good financial environment, increase the supply of financial technology and grow the advantages of it, which are of great practical significance to reduce systemic financial risks and build up a good financial ecological environment.

Risk Management Implementation Strategy And Bank Health Level Assessment In The Framework Of Increasing The Performance of PT. BPR Jatim


 BPR JATIM is one of the pilots BPR in the East Java operational area that has good risk management, and has just won the 2nd Best Indonesian Enterprises Risk Management Category: Local Government with assets of over IDR 1 trillion from Economic Review Magazine. This makes PT. BPR JATIM is recognized as one of the best BPRs with good risk management implementation. Therefore, this research was conducted to analyze the quality of risk management implemented by PT. BPR JATIM and to determine the health level of PT. BPR JATIM. Qualitative research with a case study approach is used in this research. Instrumental provisions of Regulation Number 13/POJK.03/2015 and SE OJK No.1/SEOJK.03/2019 concerning Implementation of Risk Management, as well as SK DIR BI No.30/12/KEP/DIR/1997, are used to analyze the implementation of management risks and the bank's ability to improve and maintain its soundness from a financial perspective. The results of this study indicate that PT. It turns out that BPR JATIM has implemented good risk management including credit risk, operational risk, compliance risk, liquidity risk, reputation risk and strategic risk, where all risks have been managed properly. The results of this study also found a link between risk management at PT. BPR JATIM with its financial analysis, where good risk management has also shown a good level of bank soundness as well.

The Impact of E-money on China's Money Supply

Electronic money alters the form of currency, reduces the demand for cash, alters the manner in which transactions are settled, and alters the quantity of reserves held by our commercial banks. Electronic money makes the relevant factors acting on the base money supply more complex, which will undoubtedly make it more difficult for the central bank to achieve control over the base money, thereby further weakening the central bank's ability to manipulate the money supply and affecting the effectiveness of the central bank's monetary policy target of the money supply. Therefore, a correct understanding of the impact of electronic money development on the base money supply is crucial for enhancing the effectiveness of monetary policy in China in light of the expanding scale of electronic money in China.

The Effect of RGEC on Financial Distress in Islamic Commercial Banks

A bank's ability to grow depends on its ability to raise funds. If the bank does not have sufficient funds, the bank will face various risks, including liquidity risk or even financial difficulties. Businesses need to reduce the risk of financial distress and understand the elements that drive it. The purpose of this study was to examine the effect of Risk Profile, Good Coorporate Government, Earnings, and Capital (RGEC) on financial distress at Indonesian Islamic Banks. Associative descriptive quantitative methodology was used in this study. With secondary data from Islamic commercial banks in Indonesia, namely annual financial reports and GCG reports for the 2015-2020 period. Purposive sampling was used to select 9 out of 14 Islamic commercial banks in Indonesia. The independent variables are NPF, FDR, GCG, ROA, ROE, CAR, and the dependent variable is financial distress, which is calculated using the Altman Z-Score model. Using multiple linear regression analysis. The results show that NPF has a significant negative effect on financial distress, while FDR has a significant positive effect on financial distress, while GCG, ROA, ROE, and CAR have no significant effect.

Impact of Finance Technology on Profit at Sharia Banks in Bandung

Industry 4.0 is currently giving rise to an innovation in all fields. One of them is the financial services sector by combining application-based funding technology. Innovations in financial services that are currently trending related to access to financial products are known as Financial Technology (FinTech). The purpose of this study is to analyse whether there are differences in earnings before and after the existence of Financial Technology in Islamic Banks. The research method used is descriptive quantitative in the form of a comparison that aims to measure the influence before and after the existence of FinTech on Profits at Islamic Banks for the 2017-2020 period as measured by Net Interest Margin, the population of this study from financial statements which was then narrowed down using purposive sampling so that the sample in this study are the quarterly financial statements of Islamic banks for the period 2017-2020. The results of the study show that in Islamic banks there is no significant effect on the net interest margin before and after using fintech, this is due to several factors including the level of security, long-term maintenance and the bank's ability to maintain internet banking are also experiencing problems. The not yet maximal use of internet banking in Indonesia for banking transactions is also still an obstacle to the development of internet banking services.

Pengaruh Risiko Kredit terhadap Profitabilitas Pada PT Bank Rakyat Indonesia Tbk Periode 2012-2019

Banking in improving financial performance by using profitability. Profitability is the bank's ability to earn profits over several periods. So that banks always try to avoid risks that occur, such as risks in providing credit. The risks that occur will cause losses for the bank, one of which will reduce the value of profitability. The method used in this research is quantitative method using secondary data sources, which is done by using the method of document collection and literature study. The population in this study is financial reports. The sample used is using purposive sampling technique. The analytical tools used in this research include simple linear regression analysis, product moment correlation analysis, determination coefficient analysis and t test. The results of statistical calculations using SPSS Version 26 concluded that there is a negative and significant influence between Credit Risk and Profitability at PT. Bank Rakyat Indonesia Tbk. The results of the t test for the credit risk of the significance value of 0.010 < 0.05 have significant effect between the credit risk to profitability