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Modeling the profitability of commercial banks in Indonesia

Economic Journal of Emerging Markets

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Field Value
 
Title Modeling the profitability of commercial banks in Indonesia
 
Creator Wulandari, Tri
Anggraeni, Lukytawati
Andati, Trias
 
Subject
loan, return on asset, return on equity, commercial bank
G21
 
Description This study examines the effect of lending on Micro, Small and Medium Enterprises (MSMEs) on the profitability of commercial banks in Indonesia. The profitability is measured as Return-on-Assets (ROA) and Return-on-Equity (ROE). It covers the period of 2011 to 2014 using a panel data regression. It finds that MSME loans have a positive impact on ROE. Other internal factors that significantly influence the profitability of banks are MSME’s NPL (non performing loan), the operational efficiency ratio (OER) and loan-to-deposit ratio (LDR), while external factors that significantly influence the profitability of banks are inflation, Gross Domestic Product (GDP) growth and the Bank Indonesia (BI) rate. 
 
Publisher Universitas Islam Indonesia
 
Contributor
 
Date 2016-10-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion


 
Format application/pdf
 
Identifier http://journal.uii.ac.id/JEP/article/view/6005
10.20885/ejem.vol8.iss2.art3
 
Source Economic Journal of Emerging Markets; Volume 8 Issue 2, 2016; 109-119
2502-180X
2086-3128
 
Language eng
 
Relation http://journal.uii.ac.id/JEP/article/view/6005/5763
 
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Rights Copyright (c) 2016 Economic Journal of Emerging Markets
http://creativecommons.org/licenses/by-sa/4.0