Conventional Commercial Banks Research Articles

Determinant of Return On Invested Capital

The banking sector is one of the most important sectors for the modern economy, because almost every industry involved in financial activities always requires banking services. This encourages the banking industry to function properly as seen from the capital it has. The amount of Third Party Funds for commercial banks continues to increase, reflecting that banking growth is getting better. Therefore, it is important to assess banking financial performance as measured by banking financial ratios. This is the reason why researchers are interested in conducting research on what influences the ROIC of Conventional Commercial Bank Companies. This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Net Interest Margin (NIM), Cash Ratio (CR), and Intellectual Capital (IC) on ROIC in Conventional Commercial Bank companies listed on the Indonesia Stock Exchange for the 2017-2021 period. The type of research used in this research is quantitative research with non-probability sampling technique using purposive sampling design. The population in this study were 46 banking sub-sector companies listed on the Indonesia Stock Exchange. The type of data used in this study is secondary data in the form of annual financial reports of conventional commercial bank companies listed on the Indonesia Stock Exchange for 2017-2021. The data analysis technique used is the eviews 10 program. The processing method used in this study is panel data regression analysis. The results showed that partially there was a significant influence on Net Interest Margin (NIM) (regression coefficient value of 2.112874, t count value 2.973486 > t table 2.034515 and a significant value of 0.0070 <0.05) and Cash Ratio (CR) ( regression coefficient value of 0.001887, t count value 4.640386 > t table 2.034515 and a significance value of 0.0001 <0.05) on ROIC. While Capital Adequacy Ratio (CAR) (t-count value 0.598328 <t-table 2.034515 and significance value 0.5557> 0.05), Loan to Deposit Ratio (LDR) (t-count value 1.310563 <t table 2.034515 and significance value 0.2035 > 0.05) , Non Performing Loans (NPL) (t count value 0.393639 < t table 2.034515 and a significance value of 0.6976 > 0.05), and Intellectual Capital (IC) (t count value 0.948279 < t table 2 .034515 and a significance value of 0.3533 > 0.05) partially had no effect on ROIC. In addition, the results of simultaneous research Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Net Interest Margin (NIM), Cash Ratio (CR), and Intellectual Capital (IC) affect ROIC is indicated by the calculated f value of 65.88711 > f table of 2.445259 and a significance value of 0.000000 <0.05. Keywords: CAR, LDR, NPL, NIM, IC, ROIC

Exploring the dynamics of Bangladesh bank's monetary policy: A factor analysis approach

This study examined the factors influencing the monetary policy of Bangladesh Bank using a structured questionnaire to interview 207 sample respondents from Bangladesh Bank and 19 listed private conventional commercial banks. The study analyzed and interpreted respondents' opinions using descriptive statistics and varimax rotated factor analysis. The study identified the effect level of various factors influencing the monetary policy of the Bangladesh Bank and ranked the factor variables from 1 to 24 based on the adjusted mean score. The researchers found that the most influential factors in the monetary policy of Bangladesh Bank are price risk, market operations, political-economic variables, and governance. In contrast, the most negligible significant factors are price stability and market liquidity based on the varimax rotated factor analysis. Therefore, the study found that the researcher's set of monetary policy factors has significant implications for the Bangladesh Bank's monetary policy.

Efficiency of Bank Aceh Syariah and Bank NTB Syariah After Conversion

This study aims to compare the efficiency levels of Islamic commercial banks using the Data Envelopment Analysis (DEA) and Hahslm Reflexivity Dynamics (HEFDYN) methods before and after the spin-off period from 2008 to 2021. The implementation of Law (UU) No. 21 of 2008 concerning Sharia banking requires conventional commercial banks (BUK) to separate their Sharia business units (UUS) and establish Sharia commercial banks (BUS) when the assets of the UUS reach at least 50% of the total assets of the parent bank or after 15 years from the enactment of the Law. This research adopts a quantitative approach and focuses on a case study of two converted banks, namely Bank Aceh Syariah and NTB Syariah. The research methodology involves employing the data envelopment analysis with the VRS approach and the Hahslm Reflexivity Dynamics (HEFDYN) method. Based on the results of the DEA analysis, Bank Aceh Syariah successfully achieved a perfect efficiency value after undergoing conversion, demonstrating effective resource utilization and optimal operational performance. Conversely, Bank NTB Syariah experienced a slight decline in efficiency values, primarily attributable to decreased income variables and financing output in 2019. The HEFDYN analysis also revealed that although Bank Aceh Syariah attained perfect efficiency post-conversion, there is still potential for improvement, particularly in terms of financing growth. Similarly, Bank NTB Syariah, despite the decrease in efficiency values, has the opportunity to enhance its financial performance through targeted improvement efforts. Keywords: efficiency, conversion, DEA, HEFDYN

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.

Testing of the Structure-Conduct-Performance Hypothesis for Industrial Banking Profitability: Evidence from Indonesia

This study aims to test the validity of the Structure Conduct and Performance (SCP) hypothesis on banking profitability in Indonesia. This research data comes from banking financial statements from the Financial Services Authority (OJK) and Bank Indonesia. The analysis method uses the panel data regression method. The banking industry studied includes 110 conventional commercial banks and Islamic banks from 2010-2019. This research has found that the profitability performance of the banking industry is statistically significantly influenced by concentration, market share, cost efficiency to generate revenue, bank size, net interest income margin, Bank Indonesia's benchmark interest rate, and economic growth. Meanwhile, inflation is insignificant. The contribution of the research was to develop of Structure Conduct Performance (SCP) theory. The SCP is applicable to Indonesian banking and it is the Hybrid of the Efficient-Structure Traditional Hypothesis which states that the effects of efficiency and market concentration have improved banking profitability performance. The combination of structure, market share, and efficiency supports the hypotheses on Efficiency and SCP Traditional. High banking profitability due to the combination of efficiency and market concentration formed by increased assets and mergers. Therefore, OJK and Bank Indonesia in encouraging asset improvement through future mergers can improve efficiency, the competitiveness of the banking industry, the and economic stability of Indonesia.

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.

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.

Perbandingan Kinerja Bank Konvensional dan Bank Syariah pada Triwulan IV 2022

This research analyzes the performance of Conventional Banks and Islamic Banks in Indonesia in the fourth quarter of 2022 using data from the official website of the Financial Services Authority (OJK). The study employs a qualitative descriptive approach. The text above discusses the performance comparison between conventional commercial banks (BUK) and Islamic banks (BUS) in several key aspects. Islamic banks show higher asset growth, reaching 15.57%, compared to the 9.42% growth in assets of conventional commercial banks. The composition of their assets also differs, with conventional banks focusing more on credit, while Islamic banks emphasize financing. Overall, both Conventional Banks and Islamic Banks demonstrate positive performance in the second quarter of 2022, with strategies such as diversified funding sources, increased productive credit, and operational efficiency being key drivers of growth amid the continually changing economic dynamics. This conclusion reflects the commitment of the banking sector to support Indonesia's economic growth.

Analyzing the Influence of Bank Competition on Credit Risk: Perspectives from Indonesia's Dual Banking System

This study analyzes the effect of competition banks on credit risk in the dual banking system in Indonesia. This research was conducted using a purposive sampling technique in selecting a sample of 5 conventional commercial banks and 5 Islamic commercial banks. The method used is the Generalized Method of Moments (GMM) from 2011 to 2020. Credit risk for Conventional Banks is measured by the value of Non-Performing Loan (NPL), while Islamic Bank Financing is measured by the value of Non-Performing Financing (NPF). The results of this study indicate that Return on Assets (ROA) for Conventional Banks and Islamic Banks has a significant effect on credit risk in the dual banking system, Loan to Deposit Ratio (LDR) for Conventional Banks does not have a significant effect on Non-Performing Loan (NPL) while Financing to Deposit Ratio (FDR) of Islamic Banks has a significant level 2 influence on Non-Performing Financing (NPF). Bank size does not have a significant influence on credit risk in the dual banking system, and the Lerner Index for Conventional Banks has a significant effect on Non-Performing Loan (NPL), while the Lerner Index for Islamic Banks has no effect on Non-Performing Financing (NPF). The Central Bank in making policies can see that the level of competition for banks in the dual banking system in Indonesia is categorized as a monopolistic competition market, where each bank has its own market segment so that it has market power that is strong enough to set prices that are relatively.

Komparasi Efisiensi Bank Umum Konvensional Pemerintah dan Bank Umum Konvensional Swasta dengan Pendekatan Data Envelopment Analysis

The research aim is to compare the level of efficiency between government-owned conventional commercial banks and privately owned conventional commercial banks. The samples are government-owned and privately owned conventional commercial banks registered in the period 2018 to 2022. The input variables used are deposits, labor costs and fixed assets; while output variables include total credit and operating income. Efficiency scores were analyzed using the data envelopment analysis method, and for the difference test the Mann-Whitney method was used. The results show that there is no significant difference in efficiency scores between government-owned conventional commercial banks and privately owned conventional commercial banks.

Comparative stability analysis of Indonesian banks: Markov Switching-Dynamic Regression for Islamic and conventional sectors.

The banking industry necessitates implementing an early warning system to effectively identify the factors that impact bank managers and enable them to make informed decisions, thereby mitigating systemic risk. Identifying factors that influence banks in times of stability and crisis is crucial, as it ultimately contributes to developing an improved early warning system. This study undertakes a comparative analysis of the stability of Indonesian Islamic and conventional banking across distinct economic regimes-crisis and stability. We analyze monthly banking data from December 2007 to November 2022 using the Markov Switching Dynamic Regression technique. The study focuses on conducting a comparative analysis between Islamic banks, represented by Islamic Commercial Bank (ICB) and Islamic Rural Bank (IRB), and conventional banks, represented by the Conventional Commercial Bank (CCB) and Conventional Rural Bank (CRB). The findings reveal that both Islamic and conventional banks exhibit a higher probability of being in a stable regime than a crisis regime. Notably, Islamic banks demonstrate a greater propensity to remain in a stable regime than their conventional counterparts. However, in a crisis regime, the likelihood of recovery for Sharia-compliant institutions is lower than for conventional banks. Furthermore, our analysis indicates that larger banks exhibit higher stability than their smaller counterparts regarding assets and size. This study pioneers a comprehensive comparison of the Z-score, employed as a proxy for stability, between two distinct classifications of Indonesian banks: Sharia (ICB and IRB) and conventional (CCB and CRB). The result is expected to improve our awareness of the elements that affect the stability of Islamic and conventional banking in Indonesia, leading to a deeper comprehension of their dynamics.

The Influence of Credit Risk Management on the Profitability of Banks Listed on the Indonesian Stock Exchange

In general, every company strives to make as much profit as possible from its business activities. Financial performance is a measure of the company's success so that goals can be achieved as expected by the company. The purpose of this study is to see how the capital adequacy ratio (CAR), non-performing loans (NPL), loan loss provision (LLP), loan to deposit ratio (LDR) have an impact on bank profitability, in this study the profitability ratio used is return on assets (ROA). Conventional commercial bank companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2022 are the samples used in this study. The data were tested using panel data regression analysis techniques. The results showed that (1) CAR has a positive impact on ROA, (2) NPL has a negative impact on ROA, (3) LLPR has no impact on ROA, and (4) LDR has no impact on ROA.

ANALISIS PERBANDINGAN TINGKAT KESEHATAN BANK BUMN DAN BANK SWASTA DENGAN METODE RGEC

The research aims to determine the assessment of the soundness level of state-owned banks and private banks book IV using the RGEC method during 2015-2019. The population of this research is all banks registered with the Financial Services Authority. This research is descriptive with a quantitative approach. The sample performance in this research used purposive sampling technique with certain criteria. The criteria are 1) The sample conventional commercial banks & state-owned enterprises are those included in book IV in 2015 - 2019. 2) National private banks & state-owned enterprises with core capital of more than 30 trillion & included in book IV during 2015-2019. 3) State-owned banks and conventional banks with a ratio of large and small core capital that are proportional to the value of the analysis method used is the different test with the independent sample test. The results of this research on the health assessment of the bank show that the NPL, LDR and ROA ratios are significant differences between private banks IV and state-owned banks, while for GCG, CAR and NIM there is no significant difference between the soundness level of state- owned banks and private banks BUKU IV.

Effects of ownership on the relationship between bank capital and financial performance: evidence from Bangladesh

The financial performance of banks relies heavily on properly utilizing their capital. However, bank ownership can have varying effects on the relationship between financial performance and capital. This study delves into this relationship by examining the impact of ownership on financial performance and bank capital. The study analyzes data from 44 commercial banks in Bangladesh and uses a two-step system generalized method of moments to address heteroscedasticity and autocorrelation issues. Unlike previous studies, this study confirms the significant effect of ownership on the relationship between bank financial performance and bank capital. The study's main findings are: (1) an inverted U-shaped relationship exists between bank capital and financial performance, implying that increasing capital can improve and reduce financial performance. (2) Private and Islamic commercial banks perform better than state-owned and conventional banks. (3) private-owned and Islamic commercial banks with higher capital are more likely to achieve higher profitability and financial success, while state-owned and conventional commercial banks with higher capital show lower profitability and weaker financial performance. Overall, this study offers significant practical implications for academics, researchers, and regulators interested in leveraging these findings.

The Effect Of Inflation, BI-7 Days Repo Rate, Credit Risk, and Liquidity Risk On The Financial Performance Of Conventional Commercial Banks With The 2017-2021

This study aims to determine the effect of inflation, the BI-7 Days Repo Rate, Credit Risk, and Liquidity Risk on the Financial Performance of Conventional Commercial Banks with the 2017-2021 research period. Research objects using 39 conventional commercial banks listed on the Indonesia Stock Exchange using a purposive sampling method. Hypothesis testing using descriptive statistics with multiple linear regression analysis methods. The results indicate that Inflation has a positive effect on financial performance. The BI-7 Day Repo Rate has no effect on financial performance. Credit risk has a negative influence on financial performance. Liquidity risk has no effect on financial performance.

ANALISIS KOMPARASI KINERJA KEUANGAN BANK UMUM KONVENSIONAL DAN BANK UMUM SYARIAH SAAT PANDEMI COVID -19

Global economic growth in 2020 contracted by 3.5% from the previous growth of 2.8% in 2019. This contraction was caused by the Covid pandemic - 19 which is not only a health crisis but also a social and economic crisis. To reduce economic pressure due to the Covid-19 pandemic, governments around the world have issued massive and extraordinary stimuli in the form of fiscal stimulus, monetary stimulus, and relaxation policies in the financial services sector. The Covid-19 pandemic is a challenge for the business world, including Islamic banking and conventional banking in Indonesia. Financial performance is an important measure of whether there is an increase in financial companies or vice versa. The data used in this study is secondary data and uses quantitative methods at the time of the Covid-19 Pandemic. The study's results show that based on the average (mean) result of each ratio, the financial performance of Conventional Commercial Banks based on LDR/FDR, CAR, NOM/NIM, and NPL/NPF is better than Islamic Commercial Banks. Meanwhile, based on the BOPO and ROA ratios, the financial performance of Islamic Commercial Banks is better than Conventional Commercial Banks. Based on the results of the independent sample t-test, it is known that the six ratios have significant differences between the financial performance of Conventional Commercial Banks and Islamic Commercial Banks based on LDR/FDR, NPF/NPL.NOM/NIM, ROA, CAR, and BOPO

Research on the Digital Transformation Development Strate-gy of Commercial Banks under the Background of Financial Technology

At present, implementing digital transformation has become the most common strategic choice of commercial banks, so it is important to study the digital transformation of com-mercial banks. The literature on Fintech and the digital revolution of conventional com-mercial banks is reviewed in this paper. This paper reviews the theoretical and empirical literature, focusing on three main issues: the influence of financial technology on commer-cial banks, the research on digital transformation of commercial banks, and the factors af-fecting the digital transformation effect of commercial banks. The vast majority of schol-ars believe that the use of financial technology can bring customers a more personalized service experience, reduce costs and increase profit levels, but it also means that the com-petitive environment for commercial banks will be more intense. According to the current development of science and technology, commercial banks must put digital transformation into practice in order to achieve sustainable development, and financial technology plays an indispensable role in the digital transformation of the banking industry. With the con-tinuous advancement of digital transformation practice, many factors affect the implemen-tation of digital transformation, including external factors such as government support, and internal factors such as the development of science and technology, digital transformation strategy formulation, and managers' awareness. This paper summarizes what people know about these issues and the questions for future research. People should look for more possi-ble factors that will affect the digital transformation of commercial banks, and study the security issues that may arise from the benefits that digitalization brings to commercial banks.

Profitability Conventional Banking : Are influencing Inflation, Capital Resilience, Efficiency in Fund Gathering and Allocation?

This research aims to examine and analyze the influence of inflation, Capital Adequacy Ratio, Loan to Deposit Ratio, and mobile banking on the profitability of conventional commercial banks (an empirical study of conventional commercial banks listed on the Indonesia Stock Exchange from 2018 to 2022). The research design has a causal associative nature with a quantitative approach. The population in this study consist of conventional commercial banks listed on the Indonesia Stock Exchange that implemented mobile banking technology for five consecutive years during the period 2018-2022. The sampling technique used is purposive sampling, resulting in 6 samples out of 30 conventional commercial banks. Data analysis is conducted through descriptive analysis, inner model analysis, outer model analysis, and hypothesis testing using the SmartPLS v.3.2.9 software. The research findings indicate that the variables of inflation, Capital Adequacy Ratio, and Loan to Deposit Ratio have a positive and significant impact on the profitability on conventional commercial banks. However, the mobile banking variable does not have a significant impact on the profitability of conventional commercial banks

Analisis Perbandingan Kinerja Keuangan Bank Umum Konvensional Dengan Bank Umum Syariah di Indonesia Menggunakan Metode RGEC Periode 2018-2022

This research aims to determine the differences in financial performance between Conventional Commercial Banks and Sharia Commercial Banks for the 2018-2022 period using the RGEC method which consists of Risk profile, Good corporate governance, Earnings and Capital. Risk Profile is proxied using the Non Performing Loans (NPL) ratio and Loan to Deposit Ratio (LDR) for BUK and Non Performing Financing (NPF) and Financial to Deposit Ratio (FDR) for BUS, GCG is proxied using the GCG self assessment composite value, Earnings are proxied using Return On Assets (ROA), Return On Equity (ROE), Net Interest Margin (NIM) for BUK and Net Operating Margin (NOM) for BUS and BOPO, and Capital is proxied using the Capital Adequacy Ratio (CAR). The sample used in this research consisted of 10 Conventional Commercial Banks and 7 Sharia Commercial Banks. Samples were taken using a purposive sampling method based on predetermined criteria. The data analysis techniques used in this research are descriptive statistics, normality test, and Independent Sample t-Test. The results of the research show that there are significant differences between Conventional Commercial Banks and Sharia Commercial Banks in the financial performance ratios of NPL/NPF, ROA, ROE, NIM and BOPO. Meanwhile, in terms of LDR/FDR, GCG and CAR financial performance ratios, there are no significant differences between Conventional Commercial Banks and Sharia Commercial Banks.

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).