National Banking Industry Research Articles

Forecasting Tingkat Kesehatan dan Ketahanan Perbankan di Indonesia

The number of commercial banks in Indonesia after the 2008 global crisis declined. The decrease in this number was caused by mergers, consolidations, acquisitions, integrations and conversions in the context of forming a resilient national banking industry structure. To ensure a stable banking sector, these banks must be evaluated through a Risk-based Bank Rating. When the 2008 global crisis economic shock and the COVID-19 pandemic occurred, the banking intermediary function was disrupted. In these conditions, the financial performance of banks also experienced a decline. This study aimed to assess the bank rating and resilience of banks in 2008-2020, forecast the bank rating and resilience of banks in Indonesia in 2021-2030 and analyze the effect of bank rating on bank resilience. This study used secondary data, that is a annual financial reports published by the Financial Services Authority. The data was analysed by ARIMA and panel data regression. The results showed that the bank rating and resilience of commercial banks declined during the economic shocks of the 2008 global crisis and the 2020 Covid pandemic. It is predicted that the resilience of commercial banks will increase in 2021-2030. Earnings as measured by ROA had a positive effect on bank resilience. Credit risk (NPL) had a negative effect on resilience, while liquidity risk (LDR) showed a positive effect on the resilience of commercial banks in Indonesia. GCG and Capital had no effect on bank resilience

MISI PENGGABUNGAN TIGA BANK SYARIAH PEMERINTAH TERHADAP LOYALITAS NASABAH TANTANGAN GLOBALISASI

The objective of the merger of the three Islamic banks is to strengthen the national banking industry's performance and solidify effective and efficient financing. Guarantees to customers to remain loyal in choosing Bank Syariah Indonesia are the projections and achievements of Bank Syariah Indonesia institutions. The research was compiled using a quantitative description method with all respondents of Bank Syariah Indonesia KCP Karawang customers with primary data distributing questionnaires with Likert five scales where respondents expressed their opinions. The results of the data analysis show that the average respondent has been a customer for two years. The merger at Bank Syariah Indonesia on customer loyalty is significant and has linearity and good normality. The level of relationship between the two independent and dependent variables is stated to be low but has a positive trend that is always changing. Keywords: Bank Merger; Customer Loyalty; Globalization

Spin-Off Appropriateness Assessment: Propriety Test of Sharia Business Unit Spin-Off to Increase Return on Assets

The obligation to transform a sharia business unit into a sharia commercial bank through a spin-off from its parent bank, a conventional commercial bank, must be balanced with a strategy to increase the return on assets (ROA) of Islamic Business Entities (BUS). A higher ROA ratio correlates with increased profitability. The regulatory provision mandating spin-offs, however, tends to weaken the BUS, making it difficult to compete in the national Islamic banking industry. This is because the spin-off obligation for the UUS can actually diminish its profitability performance. As Watchell has noted, while spin-offs can create differentiation from investment targets in each business, they can also lead subsidiary companies to become more focused in determining their corporate strategy and operations. This focus, however, often results in new operational strategies that increase the subsidiary's operational burden and potentially reduce profitability. Empirically, several sharia commercial banks in Indonesia have experienced a decline in the profitability of their sharia business units after spinning off into independent sharia commercial banks. This research employs normative or doctrinal juridical methods, utilizing both a statute approach and a conceptual approach. As an innovative contribution, the author proposes the Spin-Off Appropriateness Assessment as a model for evaluating the implementation of spin-offs in sharia business units. This assessment aims to increase the ROA ratio and create an investment climate that is environmentally sound. It comprises three main components: fixed capital, non-performing loan identification, and capital sources mapping.

Revitalization Supervision Islamic Banking in Enhancement Compliance in Indonesia and Malaysia

This study is indicated with social reality that, following three decades of dual banking system implementation in Indonesia, Islamic banks' operational activities are essentially identical with the operations of conventional banks. The thing that distinguishes is only the Shariah "brand". In the vast zone of national banking industry, Islamic banks are still being the "followers" of conventional banks with approximately 6.65% market share. The focus of study is on the Islamic bank supervision system by DPS, the Shariah Bank Compliance Directorate, and OJK in carrying out supervisory functions related to fields of duty. The study methodology applied is a normative legal study which includes a study of norms, principles of sharia banking law, and the opinions of sharia economic law experts, while those used are a statutory approach and a sociological approach. The next stage of data analysis is data display, which illustrated through tables, figures, and graphs. Data categorization was carried out relied to the theme to identify the implementation of Islamic bank supervision duties in conforming to Shariah principles and the implementation of laws and regulations. The results showed that there are several problems in Islamic bank supervision institutions that make supervisory performance not optimal and pose potential legal risks for the bank. The roles of DPS, the Directorate of Shariah Bank Compliance, and OJK, which run independently and inefficiently, create overlapping aspects of Islamic bank supervision. This study recommends amending UURI No. 21 of 2008 about Shariah Banking by giving attributive responsibility to DPS to sanction Islamic banks that proved to violate Shariah principal compliance and establishing the OJK regulations on Islamic banking audit instruments.

Corporate Sustainability and Shareholders’ Wealth in the National Financial Sector

The desire of every shareholder is to see that shareholders’ wealth is given strategic central point attention far and above other priorities of the management. Prior studies have shown that meeting shareholders’ wealth expectations in Nigeria is complex and full of challenges considering the infrastructural deficits, security challenges and lack of corporate legitimacy capable of enhancing shareholders’ wealth in the country. In addition, effective sustainability performance has been advanced as capable of improving corporate performance and increasing shareholders’ wealth. In contributing to knowledge, this study looked at how corporate sustainability affected shareholders' wealth in Nigeria's national banking industry. Using an <i>ex-post facto</i> research design, the study employed secondary data extracted from selected financial institutions from banking institutions. A total of 15 financial institutions were chosen using a purposive sample technique during a 15-year period, from 2008 to 2022, from the population of 65 financial institutions listed in Nigeria. The certification by the external auditors served as the foundation for the data's dependability and authenticity. Inferential (multiple regression) analysis was employed using a pooled panel data analysis. The result showed that corporate sustainability exerted a significant effect on shareholders’ wealth (<i>Adj. R2</i> = 0.7474, <i>F-stat/Wald test</i> (4, 220) = 18.30, <i>p </i>< 0.05). The study concluded that corporate sustainability had a positive and significant effect on shareholders’ wealth in the national financial sector in Nigeria. Consequent to the results, managers should ensure that effective corporate sustainability policies are instituted and practised in their companies.

Analysis Of The Influence Of Compensation, Leadership Style And Organizational Culture On Employee Performance In National Banking Industry

The purpose of this study is to ascertain how organizational culture and leadership style, with pay acting as an intervening variable, affect employee performance. 100 employees were used in the saturation sampling approach to determine the study's sample. Using SPSS 26, path analysis was the data analysis method employed in this investigation. The findings demonstrated tha leadership style has a direct bearing on remuneration; and organizational culture has a direct bearing on compensation. Leadership style and corporate culture have a simultaneous impact on pay. The performance of employees is directly impacted by organizational culture. Employee performance is not directly impacted by a leader's style. Compensation directly affects how well employees perform. Employee performance is influenced by salary, leadership style, and company culture all at the same time. Compensation is determined to be a mediating variable for each of the leadership style and organizational culture factors on employee performance based on the results of the Sobel Test.

Opportunities Analysis of Indonesian Sharia Bank (BSI) Become Top 5 Bank in Indonesia Based on Asset Strength and Vision Mission

The company's organizational goals can be achieved through several strategies used in determining competitive advantage, namely by using various strategies, namely by identifying the company's internal and external factors, including the role of the workforce or employees. In addition, it also develops product services through digitization that is more flexible and convenient for customers, such as the use of a single system, which means that now Bank Syariah Indonesia has one core banking system, one enterprise data, one bank code code 451, and one financial reporting. under the name Bank Syariah Indonesia (BSI). This study aims to measure BSI's opportunities in achieving the target of becoming the top 5 in the national banking industry. This research is a research with a qualitative descriptive approach. This research was carried out at Bank Syariah Indonesia KCP Molyosari Surabaya, the subjects of this research were the Branch Manager (BM), Micro Relationship and Manager Team Leader (MRMTL), Consumer Bussines Staff (CBS), Customer Service (CS), Branch Operation and Service Manager (BOSM). The data collection method in this study used interviews, observation, and documentation, then analyzed descriptively qualitatively. Through the findings in this study, it is hoped that the right and measurable strategy will be obtained in achieving the target of the top 5 banks in Indonesia

An Analysis of the Performance of Regional Development Banks (RDB) in Indonesia: Stochastic Frontier Analysis Approach

The dominance of the banking sector shows that the banking industry plays an important role in driving the economy in Indonesia. As part of the national banking industry, Regional Development Banks (RDB) are required to contribute to the economy through optimal performance. One of the important indicators in measuring company performance, including in the banking industry, is the level of efficiency. Efficiency in the banking industry can be observed from a micro and macro perspective, which leads to the ability of banks to survive in conditions of increasingly fierce competition in technology-based products and services, as well as the ability of banks to allocate financial resources to increase investment activities that can stimulate the economy. Therefore, this study examined the level of cost and profit efficiency of the RDB industry in Indonesia for the 2011–2020 period, as well as the internal and external variables that affect RDB inefficiency using Stochastic Frontier Analysis (SFA). The results show that there are no RDB’s efficient in cost and profit. Furthermore, the variables capital adequacy ratio and technology investment impact on increasing cost and profit efficiency, opposite with non-performing loan. Therefore, to optimize the xRDB’s cost and profit efficiency, the main thing that must be done includes managing and improving good quality loans as well as optimizing idle funds.

Analysis of Financial Performance of Conventional and Islamic BUMN Banks Before and During the Covid-19 Pandemic

Almost all economic sectors in the world have been affected by the Covid-19 pandemic, including the national banking industry in Indonesia. This study purpose was to examine the differences in the financial performance of State-Owned Conventional Banks and State-Owned Sharia Banks before and during the Covid-19 pandemic. The assessment of financial performance uses the CAR ratio, NPL ratio (for conventional banking) and NPF ratio (for Sharia banking). The database used is the 2019 and 2020 banking financial reports in the website of Financial Services Authority and the websites of each bank. Based on purposive sampling technique, the selected banks that meet the criteria are BRI bank, Mandiri bank, BNI bank, BTN bank, BRI Syariah bank, BNI Syariah bank, and Syariah Mandiri bank. The results of paired sample t test analysis showed that Ho was accepted, meaning that there was no difference in the performance of Capital Adequacy Ratio at SOCB before and during the Covid-19 Pandemic. The analysis of paired sample t test for SOSB, which is seen from the CAR, shows that there is no difference in the performance of CAR ratio of SOSB before and during the Covid-19 pandemic. This indicates that both SOCB and SOSB can maintain their capital adequacy ratio. Conversely, the performance of SOCB credit financing (NPL), using the paired sample t test, shows that there is a difference in the NPL performance of SOCB before and during the Covid-19 pandemic. Meanwhile, contrary to the NPL results of SOCB, the NPF of SOSB shows no difference, both before the Covid-19 pandemic and during the Covid-19 pandemic. This indicates that the performance of SOSB credit financing (NPF) is relatively safe compared to the performance of SOCB (NPL) credit financing.

Analysis of The Merger of PT Bank Syariah Indonesia in Legal and Sharia Perspective

Legal analysis are necessary to the general considerations for merging in order to create a national banking industry structure that is strong and competitive and responsive to future challenges and special considerations for the merger of PT BNI Syariah and PT Bank Syariah Mandiri into PT Bank Syariah Indonesia, namely as an effort to create new and contributing national development workers. Towards the welfare of the wider community and shows the performance of sharia banking in Indonesia which is modern, universal, and provides goodness for all nature (Rahmatan Lil ‘Aalamiin). This issue has significance to be studied based on law and sharia because it can be a legal reference in the future. The research was conducted based on normative legal research and qualitative analysis. The result of this research shows that the considerations and the merger process are based on statutory regulations and have complied with sharia principles in the sense of fulfilling the values and objectives of Islamic banks, as well as being in line with the function of law as a means of development in order to achieve the benefit of the people and all the people of Indonesia.

The Magnitude of Market Power between SCBs and SBUs: the Root Cause of Stagnancy of the Growth in Islamic Banking Industry and Spin-off Policy as its Solution

This research aims to explore the magnitude of market power’s effect on the two types of Islamic banks consisting of Sharia Commercial Banks (SCBs) and Sharia Business Units (SBUs) and analyze the spin-off policy. Time-series data, obtained from the banks’ monthly financial statements, were used, and the Lerner index under the level of price and cost was utilized. Independent samples t-test and correlation test were employed as additional tests to analyze data. The starting point of the finding discloses that the mean difference of market power on two types of Islamic banking is significant. It indicates that the type of Islamic banks in Indonesia creates a disparity in the market power between SCBs and SBUs where SCBs show low power, otherwise SBUs is in high power value. A high-power magnitude gained by SBUs continues to be absorbed by the conventional bank as its parents. This process leads the growth of conventional banks to increase greater in the banking industry, while the growth of Islamic banks is stagnant. The additional finding discloses that when the SBU undertakes the spin-off, Islamic banking in Indonesia tends to capture a greater power in the national banking industry.

ANALISIS MODEL PENYELAMATAN PEMBIAYAAN BERKUALITAS RENDAH DAN PEMBIAYAAN BERMASALAH NASABAH TERDAMPAK COVID-19 BANK DAERAH SYARIAH

Coronavirus Disease 2019 (Covid 19) has made a serious impact on the national banking industry. Financial Services Authority (OJK) has issued a relaxation policy that is expected to suppress non-performing loans/financing in national banks. This study aims to identify and assess policies, technical models and contracts from restructuring activities for customers affected by Covid 19 at Islamic Banks towards sharia principles and banking prudential principles. This Qualitative - Empirical Research concludes that the activity of restructuring activities for customers affected by Covid 19 at PT Bank Daerah Syariah is in accordance with sharia principles and banking prudential principles, a note of improvements on the side of administrative costs and the financing restructuring contract.

Application of Quadratic Exponential Smoothing and Markov Chain in Computer Predicting Total Amount

Deposits are the main source of funds for commercial Banks in China. The growth rate of total bank deposits is relatively stable, which has a crucial impact on the development of national economy and banking industry. Therefore, it is very important to accurately predict the total amount of bank deposits, which can provide a reliable basis for the scientific management of Banks. This paper takes the total deposits of ICBC in each quarter in the past decade as the historical data, which is used to choose smoothing times, initial smoothing values, and optimal smoothing coefficient. Markov chain is combined with second exponential smoothing model, which is used to predicting total deposits of ICBC in 2020.

PENGARUH ISLAMIC MARKETING TERHADAP KEPUASAN DAN LOYALITAS NASABAH PADA BANK MUAMALAT CABANG MALANG

Indonesia is a country with a majority Muslim population. In the context of Indonesian’s, Muslims constitute a very large market share for marketing products, especially Islamic products. One of the products based on Islamic values is Islamic Bank. In Indonesia, Bank Muamalat is the first bank in existence. With such a large Muslim population, on the other hand, Islamic banks do not hold market share in the national banking industry. Islamic banks lag behind other conventional banks. Therefore, a strategy is needed to increase that market share. Islamic marketing is a strategy that can be used to increase customer satisfaction and loyalty at Bank Muamalat Indonesia.This research is an explanatory research with a quantitative approach. The sampling technique used in this study was purposive sampling. Respondents in this study were 120 people. The Machin and Campbell formula is used to determine the number of respondents. The objectives of this study are (1) to determine the effect of Islamic marketing on customer satisfaction; (2) to determine the effect of Islamic marketing on customer loyalty; (3) To determine the effect of customer satisfaction on customer loyalty.The results of this study are (1) Islamic marketing has a significant effect on customer satisfaction; (2) Islamic marketing has a significant effect on customer loyalty; and (3) Customer satisfaction has a significant effect on customer loyalty. So that Bank Muamalat in increasing customer satisfaction and loyalty needs to improve the existing indicators in Islamic Marketing

The impact of culture upon operational risk management guidelines in the banking sector of selected Asian countries

For banks, operational risk losses are likely to have a significant impact not only on their financial condition, but also on their reputation. This makes operational risk management (ORM) particularly important. In relation to ORM, the Basel Committee on Banking Supervision promotes a banking supervision policy based on the idea of “enforced self-regulation”. Thus, the central banks of different countries regulate ORM according to the specificities of their national banking industry. This paper tests the hypothesis that such regulatory openness results in legal texts that are highly influenced by the culture of the country in which each central bank issuing guidelines on ORM is located. The author analyzes a corpus of approximately 50 000 words that feature in ORM guidelines published in English by the central banks of China, Hong Kong, India, Indonesia, Japan, Singapore and South Korea. By applying the Kendall coefficient, the following significant correlations have been found: (a) the higher the masculinity dimension, the less clear the text; and (b) the higher the masculinity dimension, the less prescriptive the text. Moreover, our content analysis reveals that each operational risk-related item has a different weight in the guidelines of different countries. The research results should be useful to regulators looking to fine-tune their decisions in different cultural environments.

Peningkatan Market Share Bank Syariah Melalui Kinerja Keuangan; Antara Moderasi Efisiensi Dan Risk-Taking Behavior

<p><em>Conducting analysis of efficiency, risk-taking behavior and market share of </em><em>Islamic</em><em> Banking in Indonesia. Conducted to answer the question of the still low market share of sharia banking in the national banking industry. The presence of Sharia Banking on dual banking system is still minimal.</em><em> </em><em>The monthly data sample of 34 Shariah Bank in Indonesia (11 Sharia Commercial Banks, 13 Sharia Business Units) is used to test the research hypothesis for the period from 2014 to 2017 using the estimator Generalized Method of Moments.</em><em> </em><em>The results show that there is a significant relationship and / or influence between the efficiency, risk-taking behavior and market share of Sharia Banking in Indonesia. Effect of moderation Efficiency and Risk-Taker Behavior on Financial Performance of Sharia Banking.</em><em> </em><em>Research limitations/ implications - Firstly, this paper focuses only on the sharia banking industry in Indonesia that adopts pro-active models, and therefore, expanding the investigation to include countries adopting different models may provide a better and more comprehensive view of the correlation between efficiency, risk-taking behavior and market share of Sharia Banking. Secondly, there is a need for more empirical data to be used, such as 7 years or more.</em><em> </em><em>This paper provides empirical evidence to regulators and policymakers in Indonesia, to understand how to increase the market share of sharia banking to the national banking industry. Furthermore, the sharia banking shareholder intends to increase the market share of sharia banking as one of the pillars of sharia finance in Indonesia which continues to grow.</em><em> </em><em>Previous studies have only discussed financial performance, efficiency and risk-taker behaviors without linking to market share levels. Because the discussion of market share is usually monopolized marketing studies..</em></p>

ANALISIS KINERJA INDUSTRI PERBANKAN SYARIAH DENGAN PENGUKURAN TOTAL ASET PADA BANK SYARIAH YANG MENGUNGKAPKAN DANA ZAKAT DAN KEBAIKAN

This research was conduct to examine the effect of compilation party funds (DPK), Financing to Deposit Ratio (FDR), zakat funds and benevolence funds on total assets of Islamic banking and to see the contribution of the Islamic banking industry to the national banking industry by employing the random effect model method and analysis of secondary data processing. This research uses a five-year (2014-2018) of Islamic banking. The result of random effect model shows that influence simultaneously variable to Total asset Islamic banking. The secondary data processing show contribution From Islamic banking industry to the national banking industry of 4%.

Beyond money and reputation: sustainable HRM in Brazilian banks

PurposeThe purpose of this study is to analyze sustainable human resources management (HRM) in the Brazilian banking industry and to propose an integrative framework of HRM practices toward sustainability, linking stakeholders to HR systems.Design/methodology/approachSupported by the stakeholder theory, the research design follows a triangulation of multiple data sources, covering 85% of the national banking industry: (1) annual Global Reporting Initiative sustainability reports, (2) employment tribunal decisions and (3) in-depth interviews with top managers of the Banking Trade Union and the Brazilian Federation of Banks, a trade association.FindingsThe analysis reveals various engagement levels across the sustainable HRM dimensions: justice and equality, transparent HR practices, profitability and employee well-being. However, current practices in all dimensions fall largely behind sustainable standards. An integrative framework of HRM practices is also proposed.Originality/valueThe study provides the first integrative framework of sustainable HRM practices in the literature.

ANALISIS EARNING PER SHARE (EPS) DAN DEVIDEND PER SHARE (DPS) BERPENGARUH TERHADAP HARGA SAHAM Studi Kasus Pada : BANK RAKYAT INDONESIA Persero, Tbk Tahun Periode 2006-2017

Abstract Equity market or equity participation in a company still promises great growth and income to potential long-term investors so that they can get the same results as the economies of developed and developing countries. To know this, potential investors must be able to understand the company's financial performance . Earnings per share EPS is one of the most important financial instruments to be able to know the income of shares owned, as well as the dividend per share DPS which can describe the dividends received by shareholders. The value of the stock which is getting better will illustrate the company's performance getting better and vice versa, this can attract investors to buy company shares. So that it can increase the company's working capital including the national banking industry in the case of BRI Bank as the Red Plate Bank. Both EPS and DPS variables have a strong impact both simultaneously and partially, while DPS has a very large effect compared to EPS

Risk Based Bank Rating dalam Mengukur Tingkat Kesehatan Perbankan

The Financial Services Authority assesses the national banking industry in the better shape shown by some indicators, one of which the involvement of the Government in realizing economic growth. With the better banking conditions will marimbas Bank on growth Of Islamic Peoples. This research aims to know the level of health of bank Syariah BPR in East Java by using methods of Risk-Based Bank Rating. The assessment by the method of Risk-Based Bank Rating consists of four factors of risk profile, Good Corporate Governance, earning and capital of each bank. This research uses descriptive method quantitative approach to analyze the ratio-the ratio of the measured. The data type used is the time series data of the year 2015 – 2017. Source data obtained from the Financial Services Authority website (OJK). Data analysis techniques using analysis of Risk-Based Bank Rating (RBBR) consist of four-factor risk profile, Good Corporate Governance, earning and capital. The study concluded that the overall average value of NPF Bank Of Islamic People (BPRS) of 13.37% unhealthy, with an average overall rating Of Sharia Rural Banks ROA (BPRS) of 0.11% with the predicate less healthy and that the average overall rating Of Sharia Rural Banks CAR (BPRS) amounted to 28.47% with very healthy.