Reexamine performance of foreign banks in Indonesia

Trinugroho, Irwan; Damayanti, Sylviana Maya; Wiryono, Sudarso Kaderi; Ariefianto, Mochammad Doddy

doi:10.1504/ijmef.2018.095740

Cited by 5 publications

(10 citation statements)

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“…Banks with higher ratios reflect the more conservative orientation; that is, using loans as the main method to create profit or margins. Fourth, as suggested by most of the studies in banking, we employ bank size as one of the control variables, proxied by the logarithm of their total assets (Hassan et al, 2022;Trinugroho et al, 2017). Higher total assets is usually associated with higher profitability (Trinugroho et al, 2017).…”

Section: Econometrics Strategymentioning

confidence: 99%

“…Prior research using region-level data such as (Trinugroho et al, 2017) and (Trinugroho et al, 2018) have also suggested using region-level controls. However, in this paper, we opt to use region-fixed effects instead of region-level controls because of insufficient data in some regions.…”

Section: Econometrics Strategymentioning

confidence: 99%

“…It is computed by one minus a Herfindahl-Hirschman Index of squared interest income and noninterest income shares. (Entrop et al, 2015;Trinugroho et al, 2018) CAR Capital assets ratio to proxy bank solvency risk, calculated using a ratio of total equity to total assets (Bitar et al, 2018 Herfindahl-hirschman index (Trinugroho et al, 2017) Equations ( 1) and (2) will be estimated using the fixed effects method. As suggested by Wooldridge (2016), the fixed effects method is more appropriate for panel data analysis because it considers individual heterogeneity that is fixed in nature.…”

Section: Revdivmentioning

confidence: 99%

“…Moreover, the empirical research using Islamic rural bank settings is still relatively sparse. Only several papers, such as Trinugroho et al (2017), Trinugroho et al (2018), and Wasiaturrahma et al (2020 specifically focus on Islamic rural banks. However, none of them are specifically focusing on the performance of the banks during the covid outbreak.…”

Section: Introductionmentioning

confidence: 99%

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The Performance of Indonesian Islamic Rural Banks During Covid-19 Outbreak: The Role of Diversification

Risfandy¹,

Pratiwi²

2022

JIMF

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This research investigates how Islamic rural banks performed during the Covid-19 outbreak and how diversification is associated with the performance of the banks. Islamic rural banks provide a unique setting because they serve limited customers in a specific region in Indonesia, different from national commercial banks that accommodate all types of customers in all regions. To investigate this issue, we employ panel data of 164 Islamic rural banks dispersed across 23 provinces in Indonesia from 2020q4-2021q3. We find that covid-19 is negatively associated with the profitability of Islamic rural banks, implying that covid 19 has affected all sectors, including banks with niche markets such as Islamic rural banks. We also find that diversification is negatively related to the Islamic rural banks’ performance. This finding suggests that instead of expanding their business scope, Islamic rural banks should focus on their main business activity because their non-financing income is adversely related to their performance. Our finding suggests that policymakers effectively monitor Islamic rural banks to remain focused on their main business activity.

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Section: Econometrics Strategymentioning

confidence: 99%

Section: Econometrics Strategymentioning

confidence: 99%

Section: Revdivmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Performance of Indonesian Islamic Rural Banks During Covid-19 Outbreak: The Role of Diversification

Risfandy¹,

Pratiwi²

2022

JIMF

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“…Therefore, we expected an increase in GDP to be positively related to dividend policy (Khan et al, 2013). For robustness checking [1], we added the return on equity (ROE) and net interest margins (NIM) variables, following Trinugroho et al (2017Trinugroho et al ( , 2018 as proxies for profitability. Following Risfandy et al (2021), we also added dividend to total assets (DIVTA) as an alternative proxy for dividends.…”

Section: Methodsmentioning

confidence: 99%

Female directors, the institutional environment and dividend policy: evidence from ASEAN-5 commercial banks

Syahfitri

Risfandy

2023

SEF

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Purpose This paper aims to investigate the impact of female directors on the dividend policies of 96 ASEAN-5 listed commercial banks between 2015 and 2020. Design/methodology/approach This paper developed an econometric model to assess the impact of female directors on the banks’ dividend policies. This paper regressed the payout variable on the female director, legal (institutional environment) variables and several control variables. This paper also considered the interaction between the female and legal variables to assess the moderating impact of the institutional environment. Findings This paper found that female directors positively affected dividend policy and that banks with female directors tended to pay dividends to balance stakeholders’ interests, especially for the minority. This paper also found that the influence of female directors was weaker in countries with strong institutional environments because greater legal protection for shareholders reinforced or replaced corporate governance mechanisms. Originality/value To the best of the authors’ knowledge, this is the first study to investigate gender diversity and its impact on dividend policy using data from ASEAN-5 countries.

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Islamic Organization and the Perception of riba (Usury) and Conventional Banks Among Muslims: Evidence From Indonesia

Harahap

Risfandy

2022

SAGE Open

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At least seven verses in the Qur’an and many hadiths highlight that riba (usury) is forbidden in Islam and should be avoided by Muslims. However, when we bring this issue into the modern context, especially its application in economics and banking, Muslims might say differently. Some Muslims with contemporary arguments could say that banks’ interest is not similar to riba because riba is only in the context of excessive lending and taking advantage of others’ needy. We survey 626 people in Indonesia and finds that 93% of Muslims said that riba is indeed prohibited in Islam, but some of them disagree if riba is similar to the conventional bank’s lending-borrowing mechanisms. In this article, we also empirically find that their involvement in the Islamic organization could strengthen their perception that riba is not similar to the bank’s interest rate.

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Reexamine performance of foreign banks in Indonesia

Cited by 5 publications

References 0 publications

The Performance of Indonesian Islamic Rural Banks During Covid-19 Outbreak: The Role of Diversification

The Performance of Indonesian Islamic Rural Banks During Covid-19 Outbreak: The Role of Diversification

Female directors, the institutional environment and dividend policy: evidence from ASEAN-5 commercial banks

Islamic Organization and the Perception of riba (Usury) and Conventional Banks Among Muslims: Evidence From Indonesia

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