Banking Industry Sustainable Growth Rate under Risk: Empirical Study of the Banking Industry in ASEAN Countries

Abstract

This research examines how the banking industry maintains its sustainable growth rate. The sample consists of 328 commercial banks in the ASEAN area. A fixed effect model is employed to analyze the data. The study reveals several findings: (1) The countries with the most risk in the banking industry are Indonesia, Thailand, Philippines, Malaysia, and Singapore. (2) Operational risk has a negative effect on sustainable growth and a positive effect on actual growth. Asset utilization positively affects sustainable growth and positively affects actual growth. (3) Business risk has a positive effect on sustainable growth but a negative on actual growth. (4) Liquidity risk positively affects both sustainable growth and actual growth. (5) Financial risk has a negative effect on sustainable growth but not on actual growth. These findings contribute to the body of knowledge of financial management specifically in terms of determining dividend and financing policy, operational activities and bridging conflicting objectives of managers and shareholders. Furthermore, these findings have implications for the practice, especially for shareholders, in how to maintain and set sustainable growth targets in conditions of various risks in banking. For banks within the framework of ASEAN integration, it is important to place SGR as a measure of sustainable finance.

Systematic Literature Review Kebijakan Dividen Pada Sektor Perbankan

“…Kebijakan dividen di sektor perbankan Indonesia selama masa pandemi COVID-19 (Santosa et al, 2023). Tingkat Pertumbuhan Berkelanjutan Industri Perbankan di bawah Risiko: Studi Empiris Industri Perbankan di Negara-Negara ASEAN (Isnurhadi et al, 2023). Mengangkat Ketangguhan Perkotaan: Filantropi, Pasarisasi, dan Praktik Lokal (Weber et al,2021)…”