Factors Influencing Profit Efficiency of Banking in Indonesia

Kadang, Juliana

doi:10.20473/jde.v3i2.9211

Cited by 5 publications

(5 citation statements)

References 8 publications

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“…The Profit Efficiency measurement model uses the development of the Activity Bank Approach model using the translog model of Alternative Profit Efficiency. The Activity Bank Approach measures all bank activities that generate profits (Kadang et al 2018). The function is as follows:…”

Section: Methodsmentioning

confidence: 99%

Indonesian Banking Performance Based on Buku

Kadang

Surayya²,

Fasial³

2021

MABIS

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The improvement in the performance of Indonesian banking when the global economy is being hit by uncertainty is one of the best achievements. Acquiring profitability is accompanied by an increase in efficiency in using available resources to gain profit. This study aims to measure and analyze the performance of Indonesian banking based on Profit Efficiency. Profit Efficiency of a bank is analysed based on BUKU (Bank Umum Kelompok Usaha). The profit Efficiency is measured using the Sthocastic Frontier Analysis (SFA) Frontier 4.1 with the translog model of Alternative Profit Efficiency. The input variables used are: labor costs, physical capital costs and interest costs. The output variable used is the amount of credit and the amount of other productive assets. The model equation used is the Bank Activity Approach. The total sample was 19 commercial banks listed on the Indonesia Stock Exchange (IDX) and had financial reports from the year of 2010 to 2019. The results of banking Profit Efficiency measurement based on BUKU conclude that BUKU 2 indicated that each bank's Profit Efficiency tends to be increasingly inefficient. BUKU 3 of profit efficiency of banks tends to be more efficient. BUKU 4 shows that banks in this group of Profit efficiency are increasingly efficient. This means that the greater the bank's core capital, the more efficient it is in generating profits.

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Section: Methodsmentioning

confidence: 99%

Indonesian Banking Performance Based on Buku

Kadang

Surayya²,

Fasial³

2021

MABIS

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“…Dendawijaya (2005) menyebutkan semakin tinggi rasio NPL semakin buruk kualitas kredit bank yang menyebabkan jumlah kredit bermasalah semakin besar, sehingga mengakibatkan kerugian yang disebabkan oleh tingkat pengembalian kredit macet. Selaras dengan hasil penelitian tersebut, Kadang et al (2019) menunjukan bahwa semakin tinggi rasio NPL, maka tingkat inefisiensi laba akan semakin tinggi. Mawardi (2004) menyatakan bahwa kondisi Non Performing Loan (NPL) yang tinggi akan memperbesar biaya, baik biaya pencadangan aktiva produktif maupun biaya yang lain, sehingga berpotensi untuk menimbulkan kerugian pada bank.…”

Section: Uji Heteroskedastisitasunclassified

“…Bank yang likuid akan lebih stabil, dimana aset likuid teresebut memungkinkan bank untuk mengatasi masalah mendesak karena penarikan uang yang tidak terduga yang dapat mempengaruhi stabilitas bank jika bank tidak memiliki aset likuid yang memadai yang dapat diubah menjadi uang tunai dengan segera dan dengan biaya yang rendah. Selain itu, Rasio LDR yang tinggi dapat menyebabkan penurunan tingkat efisiensi laba (Kadang et al, 2019) Penelitian ini menunjukkan faktor lain yang mempengaruhi stabilitas bank, yaitu GDP, BOPO, dan BI Rate. Hasil penelitian menunjukkan bahwa BOPO memiliki pengaruh pada stabilitas bank, sedangkan GDP dan BI Rate tidak berpengaruh terhadap stabilitas bank.…”

Section: Uji Heteroskedastisitasunclassified

The Effect of Credit Risk and Liquidity Risk on Bank Stability

Dwinanda

Sulistyowati

2021

JIETcon

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The purpose of this study is to determine the effect of credit risk and liquidity risk on bank stability. This study used the multiple regression analysis to determine the effect of credit risk and liquidity risk as the independent variables, with BOPO (Biaya Operasional Pendapatan Operasional), GDP (Gross Domestic Bruto), BI Rate as the control variables, on Bank Stability as the dependent variable. Using purposive sampling method to collected data from the list of banking companies in OJK (Otoritas Jasa Keuangan) from 2013 to 2017 consisting of 437 observations. The estimated results show that credit risk has a significant negative effect on bank stability, and liquidity risk has a significant negative effect on bank stability. Whereas in the control variable, GDP does not affect bank stability, BOPO has a significant negative effect on bank stability, and the BI-Rate does not affect bank stability. Keywords: Credit Risk, Liquidity Risk, Bank Stability.

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“…Market power is an important indicator in determining industrial performance and the welfare of society (Krattenmaker et al, 1987;Nicholson & Snyder, 2008;Pindyck & Rubinfeld, 2014). Theoretically market power refers to the market's ability to influence prices (Kadang, et al, 2018). Meanwhile, market power is determined from how high the power of competition and how strong the influence of price (Lipczynski et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

Does Switching Cost Affect Dual Rural Banks Market Power?

Fajri

Purwono²

2022

JDE

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This study aims to review the effect of switching costs on rural bank market power. This study is using dynamic panel regression of the Generalized Method of Moments (GMM). This paper used panels of 1266 rural banks and 113 Sharia Rural banks from 2013 to 2019. To further analyze this study using Lerner Index as proxies of market power, Bertrand Competitions models as proxies of switching costs, and banking indicators covering bank size, equity, non-interest income, and the burden of allowance for productive assets (Lost Loans Provision). The results show that switching costs have a significant positive effect on the conventional rural bank and negatively affect sharia rural bank's market power. This condition is caused by various reasons, namely the limited choice of rural banks so that consumers survive the switching costs charged. Meanwhile, in sharia rural bank transparency is clearly seen on the side of mudharobah and musyarakah which makes it unable to increase financing margins freely.

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Factors Influencing Profit Efficiency of Banking in Indonesia

Cited by 5 publications

References 8 publications

Indonesian Banking Performance Based on Buku

Indonesian Banking Performance Based on Buku

The Effect of Credit Risk and Liquidity Risk on Bank Stability

Does Switching Cost Affect Dual Rural Banks Market Power?

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