The bank-specific and macroeconomic determinants of bank profitability in Indonesia
The purpose of this paper is to explore the influences of internal factors and macroeconomic determinants of bank performance in Indonesian banking sector during the period from 2011 to 2016. By using an unbalanced panel data of 136 banks in Indonesia banking sector, a fixed effect model is used to...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2017
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| Online Access: | https://eprints.nottingham.ac.uk/46007/ |
| _version_ | 1848797237717499904 |
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| author | Xie, Jianan |
| author_facet | Xie, Jianan |
| author_sort | Xie, Jianan |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | The purpose of this paper is to explore the influences of internal factors and macroeconomic determinants of bank performance in Indonesian banking sector during the period from 2011 to 2016. By using an unbalanced panel data of 136
banks in Indonesia banking sector, a fixed effect model is used to capture the unobserved heterogeneity of banks. With ROAA and ROAE as two performance measure to capture the difference in determinants of Indonesian banking, loan
divided by total assets, loan loss reserves over total loans, liquid assets to total assets, loan to deposit and short-term funding, loan loss provisions to total loans,
cost to income ratio, equity to total assets and bank size are selected as internal variables to represents asset quality, liquidity, credit risk, operating efficiency and
capital adequacy of the banks. The GDP growth rate, concentration, MACPASS and unemployment rate used as external variables. The estimation results report that
COSTI and LLPTL have a statistically significant and negative relationship with bank performance while LODEP is positive and significant related to Indonesian banking
sector. However, the empirical results illustrate that all external variables are insignificant, which means that the correlation between external factors and Indonesia banking cannot be confirmed during the research period. |
| first_indexed | 2025-11-14T20:00:41Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-46007 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:00:41Z |
| publishDate | 2017 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-460072018-04-17T15:13:15Z https://eprints.nottingham.ac.uk/46007/ The bank-specific and macroeconomic determinants of bank profitability in Indonesia Xie, Jianan The purpose of this paper is to explore the influences of internal factors and macroeconomic determinants of bank performance in Indonesian banking sector during the period from 2011 to 2016. By using an unbalanced panel data of 136 banks in Indonesia banking sector, a fixed effect model is used to capture the unobserved heterogeneity of banks. With ROAA and ROAE as two performance measure to capture the difference in determinants of Indonesian banking, loan divided by total assets, loan loss reserves over total loans, liquid assets to total assets, loan to deposit and short-term funding, loan loss provisions to total loans, cost to income ratio, equity to total assets and bank size are selected as internal variables to represents asset quality, liquidity, credit risk, operating efficiency and capital adequacy of the banks. The GDP growth rate, concentration, MACPASS and unemployment rate used as external variables. The estimation results report that COSTI and LLPTL have a statistically significant and negative relationship with bank performance while LODEP is positive and significant related to Indonesian banking sector. However, the empirical results illustrate that all external variables are insignificant, which means that the correlation between external factors and Indonesia banking cannot be confirmed during the research period. 2017-09-13 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/46007/1/Disertation.pdf Xie, Jianan (2017) The bank-specific and macroeconomic determinants of bank profitability in Indonesia. [Dissertation (University of Nottingham only)] |
| spellingShingle | Xie, Jianan The bank-specific and macroeconomic determinants of bank profitability in Indonesia |
| title | The bank-specific and macroeconomic
determinants of bank profitability in
Indonesia |
| title_full | The bank-specific and macroeconomic
determinants of bank profitability in
Indonesia |
| title_fullStr | The bank-specific and macroeconomic
determinants of bank profitability in
Indonesia |
| title_full_unstemmed | The bank-specific and macroeconomic
determinants of bank profitability in
Indonesia |
| title_short | The bank-specific and macroeconomic
determinants of bank profitability in
Indonesia |
| title_sort | bank-specific and macroeconomic
determinants of bank profitability in
indonesia |
| url | https://eprints.nottingham.ac.uk/46007/ |