Factors Affecting Bank Performance: Cases of Top 10 Biggest Government and Private Banks in Indonesia in 2004 - 2013
| Main Authors: | Rina Adi Kristianti, Yovin Yovin |
|---|---|
| Format: | Article application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Karya Ilmiah Dosen Fakultas Ekonomi
, 2016
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| Online Access: |
http://journal.tarumanagara.ac.id/index.php/kidea/article/view/2911 |
Daftar Isi:
- This study explores the internal factors that affect the performance of government and private banks in Indonesia. Samples include government and private banks whose assets were top l0 in the period of 2004-2013. The dependent variable is ROA while the independent variables are capital adequacy ratio (CAR), operational effrciency, net interest margin (NIM), non- performing loans (NPL) and loan to deposit ratio (LDR). The results show that there are significant factors that influence the performance of the government banks operational efficiency, NIM, and NPL. As for the private banks -- they are the factors are CAR and operational efficiency. The results support the effrciency theory, the signaling theory and relative market power hypothesis. This finding is expected to improve the performance of both the government banks and private banks in Indonesia.