Fee-based Income Research Articles

FEE BASED INCOME IN MODERATING THE EFFECT OF RESTRUCTURING CREDIT, CREDIT, AND DEPOSITS ON PROFIT PERFORMANCE OF CONVENTIONAL COMMERCIAL BANKS

This study aims to analyze the effect of credit restructuring, credit, and savings on earnings performance and analyze the FBI (Fee Based Income) in moderating the effect of credit restructuring on earnings, credit on earnings, and savings on earnings controlled using firm size (Size). The population in this study is conventional commercial banks listed on the Indonesia Stock Exchange (IDX) for the 2019-2020 period, the number of samples is 43 commercial banks, namely all conventional commercial banks listed on the IDX. This study uses secondary data in the form of financial statements published by commercial banks listed on the Indonesia Stock Exchange (IDX) for the 2019-2020 period. The data analysis used in this research is multiple linear regression analysis and moderation regression analysis with the Moderated Regression Analysis (MRA) interaction test. The results of multiple linear regression analysis show that credit restructuring has a negative effect on profits, credit has a positive effect on profits, and deposits have a positive effect on profits. The results of the moderating regression analysis with the Moderated Regression Analysis (MRA) interaction test show that the FBI weakens the effect of credit restructuring on earnings, the FBI strengthens the effect of credit on earnings, and the FBI strengthens the effect of savings on earnings.

OPTIMALISASI LABA MELALUI PEMULIHAN PEMBIAYAAN BERMASALAH DAN HAPUS BUKU DI BANK BJB SYARIAH KCP SUMEDANG

Profit is often used as a measure to assess company performance. The elements that form part of profit are income and costs. Profits in Islamic banks can be obtained through expansion of fund distribution (financing), fee-based income and rescue of non-performing financing as well as recovery of write-off financing. The most significant profit optimization outside the main business of Islamic banks is obtained through the recovery of non-performing financing and write-offs. The concept of Miles and Huberman can be applied in determining steps to save or resolve non-performing financing and recover write-offs to acquire loss reserves into profit. Through data reduction and then presenting research data, conclusions can be drawn from the results of research analysis in the form of a chart or cycle of problem solving steps. Based on the financial data for 2019, 2020 and 2021 analyzed, it can be revealed steps and procedures for rescuing and resolving non-performing financing and recovering write-offs at Bank bjb Syariah KCP Sumedang . The results of the analysis are proven to be able to increase profits significantly, so that the profits obtained by the bank become more optimal. The implementation of an early warning system is also needed in the context of handling the financing portfolio through strengthening the financing decision committee and improving the quality of contracts as well as controlling and monitoring the quality of ongoing financing.

Pengaruh Pembiayaan Konsumtif, Pembiayaan Modal Kerja dan Fee-Based Income Terhadap Profitabilitas BPRS BDW Yogyakarta

The level of financing and fee-based income at the BPRS indicates the level of quality of the bank. If a bank wants to improve its performance and quality, one way to improve it is to look for sources of income outside the primary income. However, increased financing and fee-based income does not always increase profitability. The researcher investigated whether murabahah, ijarah, mudharabah, and fee-based income financing have an effect on profitability and what is the cause of the imbalance between the increase in funding and fee-based income with profitability, especially ROA and ROE. This study uses a quantitative approach. The object of the research is PT BPRS Bangun Drajat Warga Yogyakarta. Murabahah, ijarah, mudharabah, and fee-based income financing as independent variables and profitability is the dependent variable. The data analysis technique used in this research is multiple linear regression. In addition, multiple regression tests showed that simultaneously the independent variables did not have a significant effect on ROA. Then simultaneously, the independent variables have a significant effect on ROE. Partially, murabahah, ijarah, mudharabah, and fee-based income financing have no significant impact on ROA. Then the funding of murabahah, ijarah, mudharabah, and fee-based income has no significant effect on ROE. Keywords: financing, fee-based income, profitability, BPRS

Digital Products Increase Fee-based Income Banking in Indonesia

This study aims to analyze the effect of digital innovation on fee-based income for five commercial banks listed on the Indonesia Stock Exchange for the 2015-2019 period. The analytical tool used in this study is panel multiple regression equations with the dependent variable feebased income and the dependent varia-ble Number of ATMs, CRM & CDM, Number of SMS, transactions Internet and Mobile Banking, Number of Branches. The results showed that Branches has an insignificant effect on fee-based income. The num-ber of ATMs, CRM & CDM, and the number of SMS, Internet and Mobile Banking transactions has a sig-nificant positive effect on fee-based income. This indicates that digital innovation in banking can increase the bank's fee-based income.

Pengaruh Inovasi Layanan Electronic Banking, Fee Based Income dan Efektivitas Pengendalian Internal terhadap Nilai Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia

The banking industry must also continue to innovate in the development of electronic banking products and services to keep up with the rapid development of information technology, which has an impact on people's habits and routines. To further reduce the need for customers to physically visit a bank branch, financial institutions must enhance their offerings to allow for the self-service acquisition of a wide range of banking services (including but not limited to account opening, account maintenance, account transfer, and account closure). The purpose of this research was to examine the impact of technological advancements in electronic banking services, fee-based income, and efficient internal control on the market value of IDX-listed banks in the sub-sector from 2016 to 2020. Sampled from the larger population of IDX-listed financial services firms over the years 2016-2020, this study focuses on the banking industry. The study's population consists of 44 IDX-listed financial services firms. There were a total of 185 observations made for this study. Descriptive research was used for this analysis. Intentional sampling. The study found that the probability value of the innovation of e-banking was 0.005. This is less than the 5% threshold (0.00500.05), so H1 is accepted. According to the results of the second hypothesis (H2) test, banking companies' stock prices rise when they bring in more money from service fees. The study found that a probability value of 0.003 at the FBI level was statistically significant. Compared to the 5% significance level of 0.0030.05, this value is less than the threshold for accepting hypothesis 2. The third hypothesis H3 tests the idea that the efficiency of internal control has a significant positive effect on the value of financial institutions. A probability value of 0.0057 0.05 was assigned to the efficiency of internal control based on the findings of the study. In other words, we accept H3 as true. The purpose of this research was to determine how the introduction of new forms of electronic banking, the growth of fee-based revenue, and the efficiency of internal control affect the market value of financial institutions.

Analisis Strategi Pemasaran PT. Bank Sumut Kantor Cabang Pembantu Syariah Karya dalam Meningkatkan Jumlah Nasabah Pembiayaan Multiguna

Marketing strategy is a continuation of the form of market introduction, which will be related to what strategy will be used in marketing the product so that it can be accepted in the market. The marketing strategy of Islamic Banks is one of the steps that must be taken in marketing banking products and services as indicated by increased sales. The increase in sales is oriented towards fund-raising and customer-oriented products, improving service quality and increasing fee-based income.
 The purpose of this study was to determine the marketing strategy of PT. Bank Sumut Sharia Karya Sub-Branch Office in increasing the number of multipurpose financing customers. The research method used in this research is qualitative with descriptive method. The data is collected, compiled, grouped, analyzed, then integrated so that it becomes a clear and focused picture of the problem under study. Is a research method that is carried out by going directly to the object of research studied at PT. Bank Sumut Sharia Karya Sub-Branch Office.
 Based on the research results, the marketing strategy used by PT. Bank Sumut Sharia Karya Sub-Branch Office in increasing the number of multipurpose financing customers is by conducting Sales Promotion, Personal Selling and advertising which is applied at PT. Bank Sumut Sharia Karya Sub-Branch Office.

The Impact of Financial Technology Payment on Bank Fee-Based Income

This study investigates the effect of the growth of financial technology payment on bank fee-based income by studying conventional banks in Indonesia from 2012 to 2019. We employ Random Effect (RE) to estimate our empirical model. Fintech payment is measured by using the log of volume transactions made by fintech payment firms. Our result shows a negative and significant relationship between fintech payment and bank fee-based income. This result indicating that, in general, fintech payment disrupts banks’ fee based-income. In particular, we find that fintech is a complement for small commercial banks.How to Cite:Kando, S., & Trinugroho, I. (2022). The Impact of Fintech Payment on Bank Fee-Based Income. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 425-436. https://doi.org/10.15408/sjie.v11i2.26809.JEL Classification: G18, G21, G28

Analisis Hubungan Spread Of Interest Rate, Fee Based Income, dan Loan To Deposit Terhadap Tingkat Return On Assets (Roa) (Studi Pada BUMN Perbankan yang Terdaftar di Bursa Efek Indonesia)

The aim of this study is: (1) To determine the relationship of interest rate spreads on the level of return on assets of gov owned bank that listed in Indonesia Stock Exchanges. (2) To determine the relationship of fee-based income to the level of return on assets of gov owned bank that listed in Indonesia Stock Exchanges. (3) To determine the relationship of loan to deposit ratio of the rate of return on assets of gov owned bank that listed in Indonesia Stock Exchanges. (4) To determine the relationship of interest rate spreads, fee-based income, and loan-to-deposit ratio of the rate of return on assets together of gov owned bank that listed in Indonesia Stock Exchanges. The method used in this research is descriptive kuantitative. The results of the study partially fee-based income has no significant effect on return on assets, the spread of the interest rate has a significant effect on return on assets, loan to deposit ratio has no significant effect on return on assets, and together spread of interest rate, fee-based income, and loan-to-deposit ratio has a significant influence on the Return on Assets (ROA) of gov owned bank that listed in Indonesia Stock Exchanges

Pengaruh Deposit Mudharabah Terhadap Profit PT. Bank Sumut Syariah Tbk Kantor Cabang Binjai Tahun 2021

This study aims to determine the effect of the nominal amount of mudharabah deposits on the profits obtained by PT. Bank SUMUT Syariah Tbk Binjai Branch Office for the period 2019-2021. This type of research is quantitative research. The source of this research data is obtained from the financial statements of PT. Bank SUMUT Syariah Tbk Binjai Branch Office. Processing techniques and in this study using SPSS computer programs and Microsoft Office Excel. Data analysis techniques in this study used descriptive statistics, classical assumption test, hypothesis testing, and simple linear regression analysis. The results of the study show that there is a significant influence between mudharabah deposits on the profit of PT. Bank SUMUT Syariah Tbk Binjai Branch Office for the period 2019-2021 this is obtained from the results of the hypothesis test, namely the t-test which shows a significance value less than 0.05 (0.002 < 0.05) and a tcount > ttable (3.284 > 2.03224 ) then there is an effect of variable X on variable Y. Mudharabah deposits affect the profit of PT. Bank SUMUT Syariah Tbk Binjai Branch Office amounted to 21.8%, while the remaining 69.7% was influenced by other variables such as financing distribution, total bank capital, service income, fee-based income, and so on. There is a positive or in line relationship between Mudharabah Deposits (X) and Profit (Y), the higher the nominal amount of mudharabah deposits, the profit of PT. Bank SUMUT Syariah Tbk Binjai Branch Office will also be higher. Vice versa, if the nominal amount of mudharabah deposits has decreased, the profit of PT. Bank SUMUT Syariah Tbk Binjai Branch Office will also experience a decline.

Evaluation of ATM Location Placement Using the K-Means Clustering in BNI Denpasar Regional Office

The existence of an ATM location requires a placement evaluation that aims to support business and provide convenience and comfort to customers when using or transacting. This study aims to evaluate the placement of ATM locations using the K-Means method, and research using data obtained from data mining to obtain decisions that lead to not strategic, strategic, and very strategic ATM locations. This study uses data sourced from the BNI ATM database and performance data in one semester or six months, namely January to June 2021, as many as 121 ATM locations spread across the island of Bali. The application of the K-Means Algorithm in this study uses 6 clustering criteria, namely ATMs Usage, ATMs Fee-Based Income/ FBI, ATMs Service Level Agreement/ SLA, ATMs distance, competitor ATMs, and Business Distance. In addition to presenting calculations using spreadsheets, this research also produces implementations in web-based software. The results of alternative classifications based on K-Means on very strategic centroids of 27 locations or covering 22.31%, strategic several 77 locations or covering 63.64%, and non-strategic 17 locations or covering 14.05%. Although the location of ATMs that are classified as non-strategic criteria is quite small, this can be optimized by several strategic steps that can be taken by stakeholders within the company, such as evaluating the bank's business plan in 2022 and improving the supervision of machines at ATM locations.

Pengaruh Transaksi Perbankan Berbasis Elektronik Terhadap Kinerja Perbankan

In this situation, the banking sector is experiencing an impact that must be worried about, so that many policy efforts are carried out to overcome it in this epidemic situation. During the Covid-19 pandemic and also in the all-electronic era like today, the necessity for digital transformation in any industry is an important event that can never be ignored. The purpose of this study is expected to be able to complete empirical evidence on the effect of electronic-based banking transactions on fee-based income and profitability. This study uses a secondary data type method, namely research data obtained by researchers indirectly through intermediary media which are generally in the form of recorded evidence or historical reports that have been compiled published by banking companies. The effect of electronic-based banking transactions as proxied by the number of ATM, mobile banking and internet banking transactions on banking performance as proxied by fee-based income and Return on assets in conventional general banking registered with the Financial Services Authority in 2019-2020.

E-Channel strategy of Bank NTB Syariah in improving service productivity during the COVID-19 pandemic

This study aims to analyze the implementation of the E-Channel strategy in Bank NTB Syariah. The primary focus is elaboration, performance, and impact of E-Channel strategy in Bank NTB Syariah in improving service productivity during the COVID-19 pandemic. The basis of primary data is obtained from Bank NTB Syariah's main office, including Directors, General Managers of related divisions, and expert staff. The results showed that the E-Channel strategy implemented by Bank NTB Syariah in improving service productivity during the COVID-19 pandemic was a catalyst for implementing its E-Channel systems, such as adding office networks and building Main Offices, machines, features, booths, and ATM stickers based on the corporate branding. In terms of digital services, Bank NTB Syariah increased Electronic Data Capture (EDC) machines, Laku Pandai services, perfecting m-banking, and partnerships with other digital payments and the Quick Response Code Indonesian Standard (QRIS). The implementation of this E-Channel strategy has a significant impact on the productivity of Bank NTB Syariah services, particularly in terms of efficiency and bank income from fee-based income, strengthening company branding, encouraging sustainable business growth, and providing Bank NTB Syariah with a competitive advantage.

BRILink: Impact on Economic Welfare During the Covid-19 Pandemic in Praya Barat

BRI provides financial services through BRILink agent at remote villages. BRILink agent give service not only provides operational efficiency benefits, but also provides convenience for BRI’s customers and non customers. Phenomena that often occur in BRI Bank customers against Brilink Agents, both directly and indirectly, such as the quality of service provided to customers that are not up to standard so that it can lead to the customer's decision to return to transactions at Brilink Agents and the impact of these problems will decrease the number of transactions and decreased fee-based income for Brilink agents. This study aims to test and analyze the effect of BRILink on economic welfare in Praya Barat Central Lombok Regency during the Covid-19 Pandemic. The research used the quantitative method with case study approach. The method that used multiple linear regression with the numeric variable include Classic Assumption Test. The data source was primary data and collection techniques conducted by interviews and observation. Respondents in this study we 27 agents of the BRILink in Praya Barat. The results showed that the number of agents and the number of transactions has a significant and positive effect on economics welfare in Praya Barat.

BRILink: Impact on Economic Welfare During the Covid-19 Pandemic in Praya Barat

BRI provides financial services through BRILink agent at remote villages. BRILink agent give service not only provides operational efficiency benefits, but also provides convenience for BRI’s customers and non customers. Phenomena that often occur in BRI Bank customers against Brilink Agents, both directly and indirectly, such as the quality of service provided to customers that are not up to standard so that it can lead to the customer's decision to return to transactions at Brilink Agents and the impact of these problems will decrease the number of transactions and decreased fee-based income for Brilink agents. This study aims to test and analyze the effect of BRILink on economic welfare in Praya Barat Central Lombok Regency during the Covid-19 Pandemic. The research used the quantitative method with case study approach. The method that used multiple linear regression with the numeric variable include Classic Assumption Test. The data source was primary data and collection techniques conducted by interviews and observation. Respondents in this study we 27 agents of the BRILink in Praya Barat. The results showed that the number of agents and the number of transactions has a significant and positive effect on economics welfare in Praya Barat.

Increasing Non-Interest Income in Banks from the Use of Credit and Debit Cards in ATMs: A Novel Approach

Most of the online banking channels have a favourable impact on the fee based ROA and ROE of both SBI and ICICI; except for the use of credit and debit cards in ATMs; Guha et al (2020). In this paper, regression model has been used to show the impact of use of credit and debit cards at ATMs on the commission, excise and brokerage of both banks; and a multiple regression model has been developed which will help in increasing fee-based income from the use of credit and debit cards in ATMs. This has important implications for the banking sector as well as the government; because, online banking channels contribute directly towards commission, exchange and brokerage of banks and these are a major source of non-interest income. Fees on the use of credit cards and debit cards in ATMs are levied on the basis of the number of transactions. However, no fees are levied on the basis of the amount of transactions. This lacuna that exists in the banking system demands attention. The aim of this paper is to make appropriate suggestions to increase the fee-based income from the use of credit and debit cards in ATMs.

Pengaruh Likuiditas, Kualitas Aset, Sensitivitas, Efisiensi Dan Profitabilitas Terhadap Permodalan Pada Bank Pemerintah

Capital Adequacy Ratio (CAR) is one of the indicator that used to measure thebank’s capital. The aims of this study are to investigate the effecs simultaneouslyand partially from Loan to Deposit Ratio (LDR), Investing Policy Ratio (IPR),Adverserly Classified Asset (APB), Non Performing Loan (NPL), Interest Rate Risk(IRR), Net Open Position (PDN), Operational Efficiency Ratio (BOPO), Fee BasedIncome Ratio (FBIR), Return On Asset (ROA) on CAR and which variable has thedominant effect on CAR. This study used secondary data taken from first periodquarterly of 2014 until the fourth quarterly of 2019 of government banks. This studyused sensus that consists PT Bank Mandiri Tbk, PT Bank Negara Indonesia Tbk,PT Bank Rakyat Indonesia Tbk, and PT Bank Tabungan Negara Tbk. The datawere processed by using SPSS 21. The result of this study revealed that LDR, IPR,APB, NPL, IRR, PDN, BOPO, FBIR, and ROA simultaneously have significanteffect on CAR. PDN and FBIR partially have significant effects on CAR. PDN isthe dominant variable that influences CAR.

Effect of Fee Based Income and Inflation Rate on Profitability (ROA) on State-Owned Banks Listed at Indonesia Stock Exchange (IDX) for The 2016 - 2020 Period

The purpose of this paper is to determine and analyze the effect of fee-based income and inflation rates on profitability (ROA) of state-owned banks listed on the Indonesia Stock Exchange (BEI) for the period 2016-2020 partially and simultaneously. This study uses a quantitative approach and uses secondary data available on the official website www.idx.co.id. The population in this study are state-owned banking companies listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 period. The sampling technique was using purposive sampling method. There are 4 companies sampled in this study. Data analysis techniques in this study using multiple linear regression analysis, correlation analysis, analysis of the coefficient of determination, hypothesis testing, t test and f test. The results showed that fee-based income and the inflation rate partially had no effect on profitability (ROA) of state-owned banks listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 period, fee-based income and inflation rates decreased simultaneously. . has no effect on profitability. (ROA) at State-Owned Banks Listed on the Indonesia Stock Exchange (IDX) for the 2016-2020 Period.

PENGARUH FEE BASED INCOME DAN TRANSAKSI E-BANKING TERHADAP PERUBAHAN LABA BANK BUMN

E-banking technology provides conveniences and speed to help customers in using financial services. The bank should increase the number of E-Banking customers to generate more fee-based Income. Thus the bank income will be increased. This study aims to determine the effect of Fee-Based Income and E-Banking Transactions on Profit Changes in state-owned banks listed on the Indonesia Stock Exchange from 2011-to 2020. The population of this research is four state-owned banking companies listed on the Indonesia Stock Exchange for the period 2011-2020. This research used 39 observations as samples, later decreasing to 31 observations due to abnormal data healing outlier detection. The results of this study show that 1). Fee-Based Income has a significant positive effect on profit changes, 2). E-Banking transaction has no significant effect on Profit Change at state-owned banks listed on the Indonesia Stock Exchange for the 2011-2020 period.

Analysis of Reporting Consecutive Losses in ABC Finance Plc Since Financial Year 2009/2010: A Case Study

The study mainly focuses on the ABC Finance PLC, a company listed in the Colombo Stock Exchange (CSE) under the diversified financial sector according to the Global Industry Classification Standards (GICS). The company is registered as a licensed finance company and registered finance leasing establishment as well. During the FY 2008/2010 the company has acquired ABC credit card company, a financially weak company that was engaged in local credit card operations, through debt funding, which is a significant event of the company. The main focus of this study is to identify the reasons for reporting consecutive losses in ABC Finance PLC since financial year 2009/2010, and provide recommendations. The study employed ratio analysis and graphical analysis to find out the reasons behind reporting consecutive losses. Accordingly, the study finds that company's interest expense on is higher during the period between FY 2008/2009 to 2017/2018 compared to other financial years because of the acquisition funded by debt. Another observation is loans and advances interest income are decreasing while there is a loan and advances growth in the company, mainly because of more loans being non-Performing as a result of high credit risk of borrowers. The hire purchase interest incomes show a decreasing trend during the period of company making losses mainly because of decrease in the demand for hire purchase service of ABC Finance Plc. Further, the company's fee-based income is decreasing, establishment expenses are increasing, director's emoluments of the company are increased bylarge percentage (395.6%) from FY 2008/2009 to 2009/2010 and it is maintained in the same level after that year which is as a result of a decision made with the intention to motivate the directors to increase the performance. In order to be away from the consecutive loss-making situation, it is recommended that the company should settle the debt obtained for the acquisition to reduce the interest expense on borrowing, reduce the credit risk, engage with promotion for its services, use a performance-based payment method for directors, and have a better expense management system for this company

Exploring the nexus between Credit risk and Off-balance sheet activities of commercial banks: A case of an emerging Asian economy

This study's primary purpose is to examine the relationship between credit risk and off-balance-sheet activities at conventional and Islamic commercial banks in Malaysia. In order to investigate and achieve the research's objectives between 2010 and 2017, a diverse group of 25 banks was chosen. The category of commercial banks includes both conventional and Islamic banking systems. Fixed effect and GMM panel estimates, followed by a series of diagnostic tests, seemed to be the most appropriate methodologies for this inquiry. According to the findings of the Husman test, endogeneity was shown to exist. In this instance, Arellano-Bond tests for zero autocorrelation may be obtained from the work's GMM analysis. In addition to establishing that the concept of market portfolio theory is accurate, the study demonstrated that off-balance-sheet performance may be improved by increasing fee-based income and, ultimately, performance, which would reduce credit risk. In addition, the results reveal a positive association between credit risk and credit risk, lending validity to the claim that financial intermediaries are required. The results of the study add credibility to market portfolio theory and financial intermediation theory. This is one of the first studies to examine credit risk and off-balance-sheet issues in Malaysia; it is also one of the earliest studies of its type. The research will aid legislators, bankers, and academics by enhancing their knowledge of these issues. The study evaluated the issue in three separate countries, taking bank-specific characteristics into consideration. Nevertheless, further study is necessary, especially with a larger sample size and under closer supervision