State-owned Banks Research Articles

Pengaruh Perubahan Kurs terhadap Return Saham Sektor Perbankan pada Masa Covid 19

The aim of this research is to determine the influence of Covid 19 which has an impact on the depreciation of the rupiah against the US dollar which then has an impact on stock prices. The case study in this research is the share price of the banking sector in the Indonesia Stock Exchange from March 1 to August 31, 2020. The population taken in this research is the banking sector listed on the Indonesian Stock Exchange. The sampling method used purposive sampling so that the number of samples obtained was 4 companies which are state-owned banking companies. Data collection is carried out by documenting data that has been published by the Indonesian Stock Exchange. Investors' reactions to information on the depreciation of the rupiah against the US dollar can be seen from the abnormal stock returns 7 days before and 7 days after information on the depreciation of the rupiah against the US dollar. The method used is the Event Study method with One Sample T-Test and Paired Test data analysis techniques.The conclusion from the results of research and data analysis from 4 state-owned banking companies listed on the Indonesia Stock Exchange during the window period is that it was found that there was no difference in Average Abnormal Return before the depreciation of the rupiah against the United States dollar (event) and after the depreciation of the rupiah against the United States dollar (event). And the paired t-test analysis shows that stock prices before the event do not affect stock prices after the event. This result shows that this market is a semi-strong market according to the Efficiency Market Hypothesis theory.

The Price to Book Value Still Influenced by The Main Factors on SDG's?

Objectives: This study aimed to obtain empirical evidence and analyze the influence of Return on Assets (ROA), Loan to Deposit Ratio (LDR), and Debt to Equity Ratio (DER) on Price to Book Value (PBV) in state-owned banks listed on the Indonesia Stock Exchange from 2011 to 2021. Theoretical Framework: The research is grounded in financial performance and valuation theories, emphasizing how internal financial ratios impact the market valuation of firms, particularly in the banking sector. Method: This research design is quantitative. The data used in this research comes from financial reports registered on the IDX. The data that has been collected is then analyzed descriptively. Results and Discussion: The analysis revealed that ROA significantly affects PBV, indicating that higher profitability leads to higher market valuation. Conversely, LDR and DER do not significantly impact PBV, suggesting that liquidity and capital structure are not primary determinants of market valuation in the context of these banks. The simultaneous effect of ROA, LDR, and DER on PBV was also observed. Research Implications: These findings suggest that investors and financial analysts should focus more on profitability metrics such as ROA when evaluating the market value of state-owned banks. The insignificance of LDR and DER implies that other factors may play a more crucial role in influencing PBV in this sector. Originality/Value: This study provides updated empirical evidence on the determinants of PBV in the context of Indonesian state-owned banks, contributing to the existing literature on bank valuation and offering practical insights for investors and policymakers.

Study On The Implementation Of Good Corporate Governance In The Business Sector State Owned Banking In Langkat District

This research aims to examine the implementation of good corporate governance in the business sector state-owned banking in Langkat Regency. This research uses research methods qualitative. The data collection technique used in this research is method observation, interviews and documentation. Data analysis techniques used in research This is a qualitative data analysis technique. The data analysis component used is reduction data (data reduction), data presentation (data display), and drawing conclusions (conclusion drawings). The research results show that the role of internal audit has an influence on implementation of the principles of good corporate governance in the company. Obstacles and Obstacles in implementing Good Corporate Governance in companies, namely the cause is HR knowledge and understanding of GCG principles is still lacking. Lots of human resources who have not attended training, seminars. Apart from that, the principle of transparency is also implemented hampered by inadequate facilities and infrastructure, such as the unavailability of a website. Regarding Independence, Internal Audit at Bank Mandiri is objective in nature carry out audit activities. Apart from that, all internal audit members at the Bank Mandiri Langkat branch, has no family relationship with the Management or staff at the Langkat branch of Bank Mandiri.

Assessment of bank risk exposure considering climate transition risks

This study utilizes the Merton model to assess how the climate transition risk exposure of banks may be affected by transition risk shocks across a 30-year horizon, considering three representative climate scenarios outlined by the Central Banks and Supervisors Network for Greening the Financial System (NGFS). The calculation results show that the rise in carbon prices will increase corporate costs and reduce operating profits, thereby increasing the probability of corporate default and ultimately raising the overall level of banks' credit risk exposure, with utilities and energy sectors being the most affected. Variations in loan distributions result in different transition risk impacts across bank types, with large state-owned banks having higher exposure due to loans in carbon-intensive sectors.

Agile Readiness Assessment of IT Audit Function at Indonesia’s State-Owned Bank

Recently, there has been increased interest in using Agile methodologies in auditing to improve efficiency and adaptability. This study examines whether Bank XYZ in Indonesia is ready to adopt Agile for IT auditing, marking a first for the country's banks. The need for Agile is driven by a significant reduction in audit staff, increased demands from management, and higher fraud risks, all of which call for a more effective and responsive audit process. The research employed both surveys based on the CA Agile Framework and qualitative analysis. It found that Bank XYZ is moderately ready to adopt Agile, showing strengths in commitment to user research, organizational culture, and training support. However, challenges such as utilizing past Agile experiences and enhancing governance must be addressed. The study recommends a gradual adoption of Agile, focusing on building a supportive Agile culture, enhancing training for auditors, and improving governance structures. This step-by-step approach will help Bank XYZ effectively integrate Agile into its IT auditing practices to better meet management's expectations for more business-focused auditing.

Market Dominance in Indonesia’s Islamic Banking: Critical Analysis From an Industrial Organisation Perspective

The merger of Bank Syariah Indonesia (BSI) has resulted in the formation of a substantial Islamic bank capable of effectively competing with large conventional banks. Despite this, concerns have been raised that BSI might eliminate smaller Islamic banks. This study aims to critically analyze the characteristics of market dominance in Indonesia's Islamic banking industry before and after the merger of BSI from an industrial organization perspective. We utilized several indicators, including the Concentration Ratio (CR), Herfindahl–Hirschman Index (HHI), and Melnik ratio. The findings strongly indicate market dominance in the Islamic banking industry following the BSI merger. However, we argue that the market dominance achieved by BSI fosters a positive environment by reducing fragmentation within the industry. This merger has also prompted other conventional banks to optimize their support for Islamic banks. Additionally, BSI has the potential to drive the Islamic banking industry forward. Therefore, the BSI merger represents a viable option for the government to support the development of the Islamic banking sector, while competition within the industry remains dynamic. Based on our findings, we recommend that State-Owned Banks provide further support for the development of BSI, and that other conventional banks optimize their support for Islamic banks.

Financial performance during the COVID-19 pandemic: An analysis of state-owned banks listed on the Indonesia Stock Exchange

This study aims to obtain empirical evidence regarding the financial performance of state-owned banks using the Capital, Asset quality, Management, Earnings, and Liquidity (CAMEL) methods. The objects in this study are state-owned banks listed on the Indonesian Stock Exchange (IDX) for three years from 2020 to 2022. This study obtained four bank samples: Bank Negara Indonesia (BBNI), Bank Rakyat Indonesia (BBRI), Bank Mandiri (BMRI), and Bank Tabungan Negara (BBTN). The type of research used is qualitative with secondary data sources. Based on the results of the study show that financial performance is reviewed using the CAMEL method in state-owned banks (BUMN), namely BBNI by 88,8 percent, BBRI by 96,45 percent, BBTN by 100 percent, included in the sound condition. In comparison, BMRI by 39,42 percent was included in the unsound condition.

Pengaruh Spiritual Leadership dan Employee Resilience terhadap Employee Performance Dimediasi Work Engagement di Bank BUMN Jakarta Timur

This study aims to analyze Spiritual Leadership, Employee Resilience, Work Engagement, and Employee Performance, as well as the relationship between them, including the influence of Work Engagement mediation. Hypothesis testing was used to test the influence of Spiritual Leadership and Employee Resilience research on Employee Performance mediated by Work Engagement on employees of State-Owned Banks in East Jakarta City. Since the relationship between variables is explained, a type of correlational research is used. Because the data used is only used once per period, it is cross-sectional and the unit of analysis is an individual, namely an employee of a state-owned bank in East Jakarta City. The results of hypothesis testing show that there are great benefits between Spiritual Leadership and Employee Resilience on Employee Performance, as well as between Spiritual Leadership and Employee Resilience on Work Engagement. However, there was no significant positive effect between Work Engagement on Employee Performance, nor the effect of Work Engagement mediation on the relationship between Spiritual Leadership and Employee Resilience on Employee Performance.

Banking efficiency, ownership types, and operations: A quasi-natural experiment of conventional and Islamic banks

This study examines the banking efficiency of different ownership types and operations in an emerging market in South Asia. It further explores the moderating effect of Islamic banking operations on such relationships. The effects of banking regulatory developments on banking efficiency are also examined through a quasi-natural experiment approach. Using 533 banking unit observations of banks for FY 2002/2003 to 2017/2018 period, and applying the data envelopment analysis (DEA) method for banking efficiency and Tobit regression, the findings document that the banking efficiency of the state-owned conventional banks outperforms privately-owned domestic banks, as well as conventional domestically owned banks (state-owned and privately-owned banks) outperforms the foreign-owned banks. Again, the banking efficiency outperformance of the conventional banking operation over the Islamic banking operation is found. However, the outperformance of conventional state-owned banks diminishes with the moderation of Islamic banking operations. Additionally, the quasi-natural experiment with difference-in-difference (DID) regression result reveals that the banking efficiency of Islamic banks and conventional state-owned banks has improved during the post-regulatory period and reduced the efficiency gap between them (in favor of conventional banks). However, the banking efficiency of conventional state-owned banks offering Islamic banking services has diminished in the post-regulatory period. These findings remain robust during the global financial crisis (GFC) and non-GFC periods. Overall, the results add a new dimension to the banking efficiency and regulatory development research for the policymakers and regulators in the financial services sector.

What explains the operational efficiency of listed commercial banks in China? Evidence from a three-stage DEA-tobit modeling analysis

Based on the actual situation of listed commercial banks in China, this study utilizes a three-stage DEA model to eliminate external macro-environmental factors and random error factors. As a result, the study objectively measures the true efficiency values of 42 listed commercial banks in China from 2015 to 2021. On this basis, a Tobit model is constructed to analyze the micro-level factors influencing the operational efficiency of listed commercial banks in China.Empirical research shows that the operational efficiency values in the first stage are significantly lower than those in the third stage. Analyzing the proportion of banks with an efficiency value of 1, it is found that state-owned banks and joint-stock banks account for a large proportion. The proportion of city commercial banks decreases significantly, while agricultural banks and commercial banks have the lowest proportion. In addition, the Tobit regression results show that bank size, innovation level, profitability, and development capacity have a significant positive impact on the operational efficiency of listed commercial banks in China at the current stage. Based on the above empirical results and analysis, specific measures are proposed to improve the operational efficiency of listed commercial banks in China.Based on the above empirical results and analysis, the study finally suggests the following specific measures to enhance the operational efficiency of listed commercial banks in China: 1. Strengthening technological investment to achieve diversified operations and cultivate new niche markets; 2. Emphasizing intermediate business income to enhance market competitiveness; 3. Undertaking digital transformation and upgrading to improve sustainable profitability.

Factors Impacting Indonesian State-Owned Banks' Ability to Disburse Credit

Factors Impacting Indonesian State-Owned Banks' Ability to Disburse Credit

Pengaruh Risiko Kredit Dan Risiko Likuiditas Terhadap ROA Dengan Good Corporate Governance Sebagai Variabel Moderasi

This research aims to determine the effect of credit risk and liquidity risk on ROA with Good Corporate Governance as a moderating variable. The research population consists of state-owned banks listed on the IDX, with a sample of state-owned banks for the period 2017-2021. This research uses quantitative methods, with data sources taken from the website www.idx.co.id and the official websites of each company. The analysis technique used is Moderating Regression Analysis (MRA). The research results show: (1) Credit Risk (NPL) has a negative and significant effect on ROA, (2) Liquidity Risk (LDR) has a positive but less significant effect on ROA, (3) Credit Risk (NPL) and Liquidity Risk (LDR) together have a positive and significant effect on ROA, (4) Good Corporate Governance (GCG) moderates the relationship between Credit Risk (NPL) and ROA, and (5) GCG does not moderate the relationship between Liquidity Risk (LDR) and ROA. Keywords : Good Corporate Governance; Credit Risk; Liquidity Risk; Return on Assets;

Bank ownership around the world

This paper describes a dataset on bank ownership that covers more than 6,500 banks in 181 countries. It documents that until 2010, there was a reduction in state-ownership of banks and an increase in foreign ownership. However, the Global Financial Crisis interrupted or reversed these trends. I show that at the country level, there is no robust relationship between bank ownership and each of GDP growth and financial depth. Bank-level regressions show that state-owned banks are less profitable and have a higher share of non-performing loans than their private (domestic or foreign) counterparts. There is also evidence that state-owned banks stabilize credit in the presence of domestic shocks (more so in the presence of positive shocks). Instead, foreign banks amplify external shocks. In terms of domestic shocks, foreign banks are not significantly different from their domestic private counterparts.

Financial intermediation around national elections: Evidence of state-owned banks as credit smoothers

This study assesses the impact of presidential and parliamentary elections on different aspects of financial intermediation, considering ownership structure as a determining factor. Consistent with the smoothing hypothesis, state-owned banks (SOBs) observed a lending growth rate of 6.67% higher during the presidential election than private sector commercial banks and subsequently experienced a decrease. During the parliamentary election cycle, indications of reciprocal trade between SOBs and peer banks emerge. SOBs step in to address the lending gap created by competing banks' reduced credit offerings, and vice versa, until the electoral uncertainty subsides. Banks implemented a more rigorous policy about their loan practices before the election years. Deposit liabilities of foreign-owned banks grew by 11.49% in the post-parliamentary election year, while SOB witnessed a contraction in deposits in the year following the presidential election. The results have consequences for national savings, investments, and economic growth. The findings align with the level of development a country exhibits, the composition of its banking sector, and its institutional attributes.

Analisis Pengaruh Risiko Kredit, Likuiditas, dan Efisiensi Manajemen Terhadap Profitabilitas Bank BUMN, Serta Perbandingan Kinerja Keuangan Bank Bumn dengan Bank Swasta

This research aims to identify the causes of profitability fluctuations in state-owned banks, which significantly impact Indonesia's economic growth. Understanding these risks is crucial to maintaining the stability and competitiveness of state-owned banks against private banks. This identify the influence of non-performing loans (NPL), loan-to-deposit ratio (LDR), and operational costs on operating income (BOPO) on return on assets (ROA) of state-owned banks from 2013-2022. It also compares ROA, NPL, LDR, and BOPO between state-owned and private banks. The study uses a quantitative approach, with multiple linear regression for influence analysis. Then, sample t-tests and Mann-Whitney tests for comparison analysis. It analyzes secondary data from 40 annual financial ratio observations, involving 4 state-owned and 4 private banks. Findings show in state-owned banks that NPL significant negatively impact ROA, LDR has no effect to ROA, and BOPO significant negatively impacts ROA. Together, NPL, LDR, and BOPO significantly influence ROA. Comparatively, there is no difference in ROA, LDR, and BOPO between state-owned and private banks, but there are differences in NPL.

Banking Performance During the Global Financial Crisis: Empirical Evidence from Bangladesh

Purpose-The Russia-Ukraine conflict and 19 pandemics have severely damaged the world economy. Banking institutions are crucial to the functioning of any economy, and their financial standing is a vital indicator of the economy's stability. Any major development, be it political or economic, has an impact on the banking industry. The dollar rate's volatility and other issues hurt the GDP. Therefore, the study examines banking performance in vulnerable global situations before and during the pandemic. This study utilizes 7 years of panel data to analyze global financial crisis banking performance. Design/methodology- Eight ratios were used to compare the banks' profitability, efficiency, liquidity position, and default risk: return on asset, asset utilization ratio, operational efficiency ratio, debt to asset ratio, loan to deposit ratio, loan to asset ratio, credit risk, and bank size. The descriptive statistics show lower ROA and AUR values for banks, but a lower CR value suggests that pandemic-era borrowers will repay their loans on time. Findings – Due to their reliance on borrowed capital, banks may be more vulnerable to default and financial leverage since they lack the liquidity to meet unforeseen requirements for funds. This is indicated by the higher mean values of DAR, LDR, and LAR. Ratio analysis shows that pre-pandemic banks profited well throughout the pandemic. State-owned banks have a worse position in profitability, efficiency, and default risk but a better position in liquidity in both study periods. Conventional banks placed first in profitability, but Islamishariah-based banks placed first in efficiency, high liquidity risk, and low default risk. Originality –This study will help bank officials find the flaw and prevent it from improving financial performance and recovering from the global crisis. This may assist bank investors and depositors in choosing wisely.

Exploring the relationship between talent management, work-life balance, and job satisfaction in state-owned banking: a mediation analysis

The objective of this study is to examine how job satisfaction mediates the relationship between talent management and work-life balance, and employee performance in state-owned banks. The analysis employed quantitative analysis and data collection approaches, namely a questionnaire issued to 127 employees using Google Forms. Performing data analysis utilising the structural partial least squares (SEM-PLS) equation model. The findings indicated that both talent management and work-life balance have a direct and substantial favourable impact on employee performance. This study also discovered that job satisfaction had a role in partially mediating the impact of talent management on employee performance. Job satisfaction somewhat mediates the impact of talent management and work-life balance on employee performance. These findings indicate the importance of consistently focusing on and enhancing talent management methods and work-life balance in order to enhance employee performance.

Profitability in State-Owned Enterprises Banks Listed on the Indonesian Stock Exchange 2019-2023 as an Effect of CAR, TATO, and NPL

The world of banking plays a crucial role in society and the government. Banks serve as a vital indicator of a country's progress, making them the lifeblood of its economy. As domestic banking becomes more advanced, the competition between banks is intensifying. Just as a financial analyst would recommend, every bank must strive to secure funds and leverage their resources, management, and technology to achieve optimal efficiency and effectiveness in combating competition. This research seeks to analyze the impact of CAR, total asset turn over (TATO), and NPL on profitability (ROA) in state-owned banks listed on the Indonesia Stock Exchange from 2019 to 2023. The data analysis technique in this research utilizes path analysis. Through data collection, a total of 4 state-owned banks were included in this research. These banks have published financial reports for a span of 5 years, resulting in a dataset of 20 data points. The data collected was analyzed using a tool commonly employed by financial analysts to conduct panel data linear regression analysis. According to the research findings, it is evident that CAR has a noteworthy positive impact on Profitability (ROA). Additionally, TATO also has a positive and significant influence on Profitability (ROA). On the other hand, NPL exhibits a negative and significant effect on Profitability (ROA).

Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia

Banks have enormous potential to support the achievement of sustainable development goals (SDGs) in accordance with their function as financial intermediaries through sustainable lending. However, the average national financing growth for the sustainable business activity category over the past four years is still 12%. The aim of this research is to identify the conditions of sustainable lending at state-owned conventional banks and analyze the influence of the value chain, economic performance, and ESG performance on sustainable lending. The research was conducted at state-owned commercial banks in Indonesia. The research utilized structural equation modeling (SEM). The SEM results of this study describe value chain, ESG performance (environmental, social, and governance), and economic performance and have direct and positive influences on sustainable lending, of which ESG performance has the biggest influence. As per each individual aspect, social orientation makes the biggest contribution toward sustainable lending.

The impact of diversification on the profitability and risk of Chinese banks: evidence from a semiparametric approach

AbstractThis paper analyzes the effects of banking diversification and focus strategies on the profitability and risk of Chinese banks in the post-crisis years (2008–2019). For this purpose, semiparametric estimates are used. The main results indicate that Chinese banks do not gain much benefit in terms of profitability and risk from following income or asset diversification strategies, although the former are more beneficial than the latter. These results have important implications for the design of specific diversification strategies for different types of banks. Results suggest that state-owned banks could benefit from a greater degree of diversification to obtain more profits and simultaneously decrease their risk levels, while national shareholding commercial banks and city commercial banks should evaluate these strategies with more caution as the benefits from them are less obvious.