Modeling the profitability of commercial banks in Indonesia
Economic Journal of Emerging Markets
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Title |
Modeling the profitability of commercial banks in Indonesia
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Creator |
Wulandari, Tri
Anggraeni, Lukytawati Andati, Trias |
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Subject |
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loan, return on asset, return on equity, commercial bank G21 |
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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.Â
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Publisher |
Universitas Islam Indonesia
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Contributor |
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Date |
2016-10-01
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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Format |
application/pdf
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Identifier |
http://journal.uii.ac.id/JEP/article/view/6005
10.20885/ejem.vol8.iss2.art3 |
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Source |
Economic Journal of Emerging Markets; Volume 8 Issue 2, 2016; 109-119
2502-180X 2086-3128 |
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Language |
eng
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Relation |
http://journal.uii.ac.id/JEP/article/view/6005/5763
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Coverage |
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Rights |
Copyright (c) 2016 Economic Journal of Emerging Markets
http://creativecommons.org/licenses/by-sa/4.0 |
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