Conventional Commercial Banks In Indonesia Research Articles

Pengaruh Ukuran, Likuiditas, dan Kinera Keuangan Bank Dengan Financial Technology Sebagai Variabel Moderasi Pada Bank Umum Konvensional di Indonesia

This study aims to determine the effect of bank size, liquidity, and financial performance with financial technology as a moderation variable (Study on Conventional Commercial Banks in Indonesia 2016-2021). The samples used were financial statement data from Bank BNI, BRI, Mandiri, and BTPN for 2016-2021, so 24 samples of this study were obtained because each bank has 6 financial statements. The sampling technique uses purposive sampling. The tests used in this study are validity, reliability, normality, heterokedasticity, multicollinearity, multiple linear regression analysis, moderating regression analysis, partial tests, simultaneous tests, and determination coefficient tests. The results showed that partially the size variable did not have a significant effect on financial performance, but the liquidity variable had a significant effect on financial performance. In the results of the moderation test, size and liquidity variables have a positive and significant effect on the financial performance of conventional banks which is moderated by financial technology variables.

Pengaruh Intellectual Capital terhadap Kinerja Perbankan Umum Konvensional di Indonesia

Banking is the lifeblood of the economy throughout the country, many wheels of the economy are mainly driven by banks either directly or indirectly. Banking in Indonesia plays a very important role, moreover Indonesia is a developing country in all sectors. This study aims to analyze the effect of banking performance on profitability at conventional commercial banks in Indonesia during the 2018-2022 period. The data used in this study were obtained from the Indonesia Stock Exchange (IDX) with a sample of 16 conventional commercial banks and used panel data regression analysis techniques. The results of the analysis show that Value Added Capital Employed (VACA) has a positive and significant effect on Return on Assets (ROA) and Value Added Human Capital (VAHU) has a negative and significant effect on ROA. However, the Structural Capital Value Added (STVA) variable has no significant effect on ROA at 16 conventional commercial banks in Indonesia during the study period.

Analisis Pengaruh Kinerja Keuangan terhadap Profitabilitas pada Bank Umum Konvensional di Indonesia

Conventional commercial banks have an important role in the Indonesian economy by being a pillar in raising and distributing funds and providing various financial services to the public, a deep understanding of the financial performance of these banks is related to their level of profitability. This study aims to analyze the effect of financial performance on profitability in conventional commercial banks in Indonesia during the period 2018-2022. The data used in this study was obtained from the Indonesia Stock Exchange (IDX) with a sample of 16 conventional commercial banks and used panel data regression analysis techniques. The results of the analysis show that Net Interest Margin (NIM) has a positive and significant influence on Return on Assets (ROA) and Operating Expenses and Operating Income (BOPO) has a negative and significant influence on ROA. However, the variables Capital Adequacy Ratio (CAR), and Loan to Deposit Ratio (LDR) did not have a significant effect on ROA in 16 conventional commercial banks in Indonesia during the study period.

Analyzing the Impact of Non-Performing Loans and Loan-to-Deposit Ratios on Return on Assets: A Study of Conventional Commercial Banks in Indonesia

The objective of this study is to examine the impact of non-performing loans (NPL) and loan-to-deposit ratios (LDR) on return on assets (ROA) within the time frame of 2015 to 2019, specifically focusing on conventional commercial banks that are publicly listed on the Indonesia Stock Exchange. The research conducted in this study is categorized as explanatory. The data utilized for analysis is quantitative and is derived from secondary sources, specifically the financial reports of conventional banks that are publicly listed on the Indonesia Stock Exchange. The present study used a data analysis technique known as multiple linear regression and partial and simultaneous tests, utilizing the statistical software SPSS version 22. The findings of the research indicate that there is a substantial negative relationship between non-performing loans (NPL) and return on assets (ROA), while the relationship between loan-to-deposit ratio (LDR) and return on assets (ROA) is negative but not statistically significant. Concurrently, the non-performing loan (NPL) and loan-to-deposit ratio (LDR) exert a substantial influence on the return on assets (ROA).

Does board diversity in Islamic banks matter?

Purpose – This paper discusses the diversity of boards and the performance of Islamic banks in three different conditions. Specifically, I will prove whether the diversity of the board is important for the performance of Islamic banks in normal conditions, turbulence, and recovery. Methodology – The data includes all Islamic and conventional commercial banks in Indonesia during 2018-2022. The research period is divided into normal, turbulent, and recovery conditions. The data were analyzed with a panel regression model. Findings – The results show that the level of board diversity in Islamic banks is lower than that of their conventional counterparts. In general, the level of board diversity is very important to encourage better bank performance. The effect of board diversity on performance is only significant in recovery conditions, but in times of turbulence, it is the opposite. In addition, I also find that diversity is most important for the BoD, while for the BoC it is the opposite. Novelty – This study is different from previous research. This study examines the factors of board diversity as a whole and focuses on board diversity as a whole. Therefore, this research will better reflect the actual conditions. Originality – This is the first paper to study the relationship between board diversity and bank performance in three conditions. It is also the first to compare the effects of diversity on Islamic banks with their conventional counterparts.

ANALYSIS OF THE INFLUENCE OF NON-PERFORMING CREDIT POLICIES ON CONVENTIONAL BANK FINANCIAL STABILITY IN INDONESIA

Credit risk is the risk that occurs when customers fail to fulfill their obligations to the bank, both principal and interest. (Risna Eka Peratiwi, 2018 )The non-performing loan policy is a step taken by a bank to overcome credit risks arising from bad or uncollectible loans. Financial stability is an important indicator in determining the financial soundness and continuity of a bank's operations. The purpose of this research is to examine and find out the influence of non-performing credit policy arrangements on financial stability, identify the factors that can influence non-performing credit policy arrangements on financial stability, and analyze how the strategy of the Financial Services Authority (OJK) increases the effectiveness of non-performing credit policies on financial stability in Commercial Banks in Indonesia. The results of this study indicate that non-performing credit arrangements have a significant influence on financial stability in conventional commercial banks in Indonesia, by implementing effective non-performing credit policies, banks can reduce the risk of non-performing loans, strengthen financial position and at the same time increase overall financial stability. . Several factors that are significant in setting non-performing loan policies include the quality of the bank's financial condition, the quality of a bank's risk management, and the development of the banking industry. As well as the research results show that OJK implements several strategies in its efforts to increase the effectiveness of a non-performing loan policy regulation. by implementing an effective non-performing credit policy, banks can reduce the risk of non-performing loans, strengthen their financial position and at the same time increase overall financial stability. Several factors that are significant in setting non-performing loan policies include the quality of the bank's financial condition, the quality of a bank's risk management, and the development of the banking industry. As well as the research results show that OJK implements several strategies in its efforts to increase the effectiveness of a non-performing loan policy regulation. by implementing an effective non-performing credit policy, banks can reduce the risk of non-performing loans, strengthen their financial position and at the same time increase overall financial stability. Several factors that are significant in setting non-performing loan policies include the quality of the bank's financial condition, the quality of a bank's risk management, and the development of the banking industry. As well as the research results show that OJK implements several strategies in its efforts to increase the effectiveness of a non-performing loan policy regulation. the quality of a bank's risk management, and the development of the banking industry. As well as the research results show that OJK implements several strategies in its efforts to increase the effectiveness of a non-performing loan policy regulation. the quality of a bank's risk management, and the development of the banking industry. As well as the research results show that OJK implements several strategies in its efforts to increase the effectiveness of a non-performing loan policy regulation.

Pengaruh Kurs, Deposito Dan Bi Rate Terhadap Profiatbilitas Dengan Kredit Sebagai Variabel Mediasi ( Studi Empiris Pada Bank Umum Di Indonesia )

The purpose of this research is to analyze the effect of exchange rate, deposit and bi rate on profitability with credit as a mediating variable. The population in this study is all monthly data from the exchange rate, BI rate, deposits, credit and profitability (ROA) of conventional commercial banks in Indonesia. The sampling method is purposive sampling with the criteria used being the closest (up to date) period by taking available data from January 2011 to December 2021. The results of hypothesis testing show that hypothesis 1 (H1) that the exchange rate has a negative effect on credit is not proven and cannot be interpreted. Hypothesis 2 (H2) that deposits have a positive effect on credit is proven and can be interpreted that an increase in the amount of deposits will increase the amount of credit. Hypothesis 3 (H3) that the BI rate has a negative effect on credit is proven and can be interpreted that an increase will reduce the amount of credit. Hypothesis 5 (H5) that the exchange rate has a negative effect on profitability is proven and can be interpreted that an increase in the exchange rate will reduce ROA. Hypothesis 6 (H6) that the BI rate has a negative effect on ROA is not proven and cannot be interpreted. The hypothesis (H7) that exchange rates have an effect on ROA with credit as a mediating variable is not proven. Because the results of the hypothesis testing are not significant, there is no mediating effect. The hypothesis (H8) that the BI rate has an effect on ROA with credit as a mediating variable is proven, resulting in a mediating effect and it can be interpreted that an increase in the BI rate will decrease ROA.

Diversifikasi Portofolio Kredit, Risiko dan Return Bank

Banks as financial intermediaries, can diversify their credit portfolios into different sectors. This study aims to determine the effect of credit portfolio diversification on risks borne and returns earned by banks. The sample in this study was 61 conventional commercial banks in Indonesia for the 2012-2014 period with a total of 112 observations. The results show that credit portfolio diversification has a significant negative effect on bank risk and return. In other words, a more diversified credit portfolio can reduce bank risk and return. Keywords: diversification, loan portfolio, bank’s risk, bank’s return

ANALISIS PENGELOMPOKAN BANK UMUM KONVENSIONAL DI INDONESIA DENGAN METODE K-MEANS CLUSTERING

The purpose of this study is to determine the grouping of conventional commercial banks in Indonesia which include healthy, unhealthy and unhealthy bank clusters. Data analysis was performed using the K-Means Clustering methodBased on the data analysis, the results are (1) there are three conventional commercial banks which are categorized as healthy bank groups or clusters, namely: Bank Rakyat Indonesia, Bank Mandiri and Bank Central Asia; (2) there are nine conventional commercial banks that fall into the category of unhealthy bank groups or clusters, namely: West Java and Banten Banks, BTPN Bank, CIMB Niaga Bank, Danamon Bank, DBS Indonesia Bank, Maybank Indonesia Bank, OCBC NISP Bank, Panin Bank and Permata Bank; (3) there are 32 conventional commercial banks which are categorized as unhealthy bank groups or clusters, namely: Bali BPD Bank, Yogyakarta Special Region BPD Bank, DKI Bank, Central Java Bank, East Java Bank, West Kalimantan Bank, East Kalimantan Bank, Lampung Bank , West Sumatra Bank, Papua Bank, South Sulawesi and West Sulawesi Bank, North Sulawesi Bank, North Sumatra Bank, ANZ Indonesia Bank, Bumi Arta Bank, Capital Indonesia Bank, CCB Indonesia Bank, Commonwealth Bank, CTBC Bank Indonesia, Ganesha Bank, Bank HSBC Indonesia, Bank ICBC Indonesia, Bank Ina Perdana, Bank KB Bukopin, Bank KEB Hana Indonesia, Bank Mega, Bank Multiarta Sentosa, Bank Resona Perdania, Bank of America, Bank of China, Citibank and Standard Chartered.

Empirical study of business intelligence systems and their influence on innovation performance

This study aims to empirically measure and test a conceptual model of the magnitude of the influence of organizational culture, IT Maturity Level, and data quality on the successful implementation of business intelligence systems and their implications for innovation performance. The areas of our empirical study through the hypotheses testing were: the estimation of the effect of business intelligence on financial performance; the impact of business intelligence on innovation; the effect of business intelligence on brand success; the impact of innovation on brand success; the impact of innovation on financial performance. The study sample included 4 commercial banks and 58 conventional commercial banks in the category of national private commercial banks of Indonesia, hence, the total sample in this study was 62 banks. This study used non-probability sampling techniques with purposive sampling techniques at conventional commercial banks in Indonesia. The data analysis method uses Covarian Based-Structural Modeling (CB-SEM) with programming tools that support primary data analysis in Lisrell 8.5. The results of this study found that the higher the level of implementation of organizational culture, IT Maturity Level, and data quality, the higher the success rate of implementing business intelligence systems which have implications for improving innovation performance, while the higher the level of application of business intelligence systems, the higher the level of innovation performance. The implementation of organizational culture is the factor that has the most significant influence on the success of implementing business intelligence systems compared to other factors studied in this study.

Do Emotional Intelligence and Ethical Leadership Elevate Work Engagement? The Mediating Role of Psychological Capital

The level of employees’ work engagement can affect an organization's resilience amid business competition. However, banking employees are often faced with rigid working hours that can affect the level of work engagement of employees. This study aims to determine the role of emotional intelligence and ethical leadership in the work engagement of banking employees. Furthermore, this study also investigates the mediating role of psychological capital because it still requires further research. The sample involved in the study was 206 employees of conventional commercial banks in Indonesia. The structural equation modeling (SEM) analysis results show that emotional intelligence, ethical leadership, and psychological capital can affect work engagement. On the other hand, psychological capital partially mediates the influence of emotional and ethical leadership on work engagement. Therefore, the result of this study can strengthen the job demands-resources theory. To increase work engagement, a deeper understanding of emotional intelligence, ethical leadership, and psychological capital can help the banking sector retain employees, improve employee and organizational performance, and maintain a competitive advantage amid intense competition between banks in Indonesia.

Financial Technology dan Kredit Bank Umum Konvensional di Indonesia

This study analyzes the impact of FinTech on the number of conventional commercial bank loans in Indonesia. This study used a sample of 40 conventional commercial banks in Indonesia listed on the Indonesia Stock Exchange for the 2016-2021 period. The number of observations in the study was 240. FinTech is measured using P2P Lending and FinTech companies are measured using the growth period of FinTech companies. The results of the research based on the regression test using the Fixed effects model, this study proves that P2P lending and the growth of FinTech companies have a positive and significant effect on the amount of lending to Conventional Commercial Banks in Indonesia. This means that the greater the P2P lending disbursed by FinTech companies and the higher the growth of FinTech companies, it will have an impact on increasing the number of conventional commercial bank loans in Indonesia. One of the important variables not examined in this study is payments made online. Therefore, further research can expand research with the same theme by presenting online payment variables.

ANALISIS RASIO KESEHATAN BANK UMUM KONVENSIONAL DI INDONESIA PERIODE 2016-2020

This research aimed to Analyse the Health Ratios of Conventional Commercial Banks in Indonesia for the Period 2016-2020. This study uses multiple linear regression analysis techniques using the Ordinary Least Square (OLS) method, with the help of the Eviews version 10 application. The results of this study indicate that the Capital Adequacy Ratio (CAR) shows that it has a negative and insignificant effect of 0.1236% on Return on Assets (ROA) in Conventional Commercial Banks. Loan To Deposit Ratio (LDR) shows that it has a positive and significant effect of 0.0000% on the Return on Assets (ROA) of Conventional Commercial Banks. Non-Performing Loan (NPL) shows that it has a negative and insignificant effect of 0.9694% on the Return on Assets (ROA) of Conventional Commercial Banks. Operating Costs on Operating Income (BOPO) shows that it has a negative and significant effect of 0.0006% on the Return on Assets (ROA) of Conventional Commercial Banks. Based on the coefficient of determination test, the ratio of CAR, LDR, NPL, and BOPO has a simultaneous effect on ROA of Conventional Commercial Banks with a value of 0.681725 or 68.17%.

Financial Technology Development and Bank Risk Taking Behavior

The rapid development of technology has triggered the emergence of various innovation efforts in the financial sector, one of which is through the phenomenon of financial technology (fintech). This empirical research aims to investigate the effect of fintech development through fintech services adopted by banks and the growth of fintech firms on bank risk taking using a balanced panel of 37 Conventional Commercial Banks in Indonesia for the period 2017 to 2021. Estimates using fixed effect and random effect models, this study finds that fintech services adopted by banks and the growth of fintech firms reduce risk-taking behavior thereby increasing bank stability. These results indicate a complementary relationship between the development of fintech and traditional banking.

Determinants of Capital Buffer: Study on Conventional Commercial Banks in Indonesia

This study aims to examine the factors that determine the capital buffer in conventional commercial banks operating in Indonesia. This study uses non-performing loans, bank size, return on equity, loans to total assets as independent variables, and capital buffer as the dependent variable. The population in this study was 38 conventional commercial banks that are still actively operating in Indonesia. The sampling method used the purposive sampling method according to the needs of the analysis and obtained 90 samples of observation data. The results showed that non-performing loans and loans to total assets had a negative effect on a capital buffer, while bank size had a positive effect. However, the return on equity has no effect on the capital buffer.

Pengaruh Kecukupan Modal, Risiko Kredit t/erhadap Profitabilitas dengan Efisiensi sebagai Variabel Intervening

This study aims to determine whether there is an effect of Capital Adequacy Ratio (CAR), Non Performing Loan (NPL) on Profitability (ROA) with Efficiency (BOPO) as an Intervening Variable, in conventional commercial banks in Indonesia listed on the Indonesia Stock Exchange period (2016). -2020). Sampling using the purposive sampling method with the criteria that the bank has a complete published report in 2016-2020, and the bank has a non-negative ROA. This study uses data obtained from the bank's Annual Financial Statements issued by the bank in the Financial Services Authority (OJK) Bank Published Financial Statements. The analytical technique used is a statistical test through the Ttest, Ftest, R2, Multiple Regression Test, and Sobel Test using the Sobel Test Calculator for the Significance of Mediation. The results of the analysis on the t test show that CAR has a negative and insignificant effect on ROA, NPL has a negative and insignificant effect on ROA, BOPO has a negative and significant effect on ROA. CAR has a negative and significant effect on BOPO, NPL has no significant effect on BOPO. And the results of the Sobel test showed that BOPO was able to mediate the CAR variable on ROA but was unable to mediate the effect of NPL on ROA.
 Keywords: CAR; NPL; ROA; BOPO

Efficiency Analysis of Five Conventional Commercial Banks in Indonesia by Examining the Principles of Sustainable Finance

This research analyzes the efficiency of conventional commercial banks in Indonesia by examining the principles of sustainable finance. This research only examines 5 banks in Indonesia during 2019-2021 due to the availability of data obtained from the sustainability report. The efficiency scores in 2019-2021 will be calculated using the DEA method with an output-oriented Bankers-Charnes-Cooper (BCC) assumption or Variable Return to Scale (VRS) assumption and an intermediation approach. Third-party funds, other operating expenses, and energy efficiency are input variables used in this research. Credit and securities are the output variables. In general, the results of this research conclude that several banks in Indonesia have a DEA efficiency score equal to 1 or have worked efficiently and the bank that always works efficiently during 2019-2021 is BCA. The practical implications to improve bank efficiency for banks that are not yet efficient are to maximize the distribution of funds through credit and securities, then these banks also need to take advantage of technological advances.

Indicators of financial distress condition in Indonesian banking industry

This study conducts the theme of The Causes of Financial Distress conditions by samples from Indonesian banking sector registered in the Financial Services Authority of Indonesia within the period of 2015-2019. The title of this study: "Indicators of Financial Distress condition in Banking sector in Indonesia” during the period of 2015-2019" with a multiple correlation approach. The purpose of this study is to determine the effect of leverage of Credit Risk, CAR, ROA, and LDR to the Financial Distress conditions. The sample of population in this study are all conventional commercial banks in Indonesia registered in the Financial Services Authority of Indonesia. The number of samples in this study were included 37 commercial banks that their profitabilities were being declined, with a total number 146 observations. The method carried out in determining the sample is “Purposive” sampling. Based on the results of study and data analysis using the panel data method, it shows that capital, credit risk, profitability and liquidity have a positive effect on Financial Distress. The implication of the above conclusion is that it required further research to perform preventive actions to anticipate the measures of financial performance of the Bank, and it is expected to select a larger population of samples and variables that might have not been included in research on banking Financial Distress in Indonesia.

Analisis Tingkat Kesehatan Bank Umum Syariah Dan Bank Umum Konvensional Di Indonesia Berdasarkan Risk Profile, Good Corporate Governance, Earning And Capital (RGEC)

This study aims to compare health levels of Islamic Commercial Banks and Conventional Commercial Banks in Indonesia using descriptive methods. This study uses a measure of Risk Profile, Good Corporate Governance, Earning And Capital (RGEC), where the Risk Profile is measured using the NPL / NPF and LDR ratios, Good Corporate Governance uses the self-assessment results reported in the FSA, Earning uses the ROA ratio and Capital Using the CAR ratio. The comparison results show differences in the soundness of the Sharia Commercial Banks with Conventional Commercial Banks, which generally indicate that the soundness of Sharia Commercial Banks is healthier.

Analisis Rasio Modal, Efisiensi Operasional, Bunga Bersih, Likuiditas, Dan Kredit Bermasalah, Terhadap Rasio Laba

This study aims to analyze financial ratios which include Capital Ratios, Operational Efficiency Ratios, Net Interest Ratios, Liquidity Ratios, Non-Performing Loans Ratios to Profit Ratios at Conventional Commercial Banks in Indonesia. The banks studied were based on bank grouping in terms of ownership category which included State-Owned Banks, National Private Foreign Exchange Banks, National Private Non-Foreign Exchange Banks, Regional Development Banks, Joint Venture Banks, and Foreign Banks. The analysis technique used is multiple regression analysis. Because the data used is secondary data, to determine the accuracy of the model, it is necessary to test several classical assumptions that underlie the regression model. Classical assumption tests used in this study include tests, normality, multicollinearity, heteroscedasticity and autocorrelation. Furthermore, to test the effect of financial ratios as mentioned, statistical tests withused Multiple Linear Regression were. Based on the research, it is found that the Capital Ratio, Operational Efficiency, Interest Yield, Liquidity, and Non-Performing Loans affect bank profits.