Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia
The paper seeks to examine the determinants of Indonesian banks profitability during the period 1990–2005. The empirical findings indicate that income diversification and capitalization are positively related to bank profitability, while size and overhead costs exert negative impacts. During the per...
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| Format: | Article |
| Language: | English |
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Institute of Southeast Asian Studies
2010
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| Online Access: | http://psasir.upm.edu.my/id/eprint/13294/ http://psasir.upm.edu.my/id/eprint/13294/1/Assessing%20the%20impact%20of%20financial%20crisis%20on%20bank%20performance%20empirical%20evidence%20from%20Indonesia.pdf |
| _version_ | 1848842073644466176 |
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| author | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_facet | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_sort | Sufian, Fadzlan |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The paper seeks to examine the determinants of Indonesian banks profitability during the period 1990–2005. The empirical findings indicate that income diversification and capitalization are positively related to bank profitability, while size and overhead costs exert negative impacts. During the period under study, Indonesian banks seem to have been skimping on their resources, particularly during the pre-crisis and crisis periods. The impact of economic growth and banking sector concentration are positive during the pre-crisis and crisis periods. We find that the Asian financial crisis exerts negative and significant impact on the profitability of Indonesian banks, while Indonesian banks have been relatively more profitable during the pre-crisis compared to the post-crisis and crisis periods. |
| first_indexed | 2025-11-15T07:53:20Z |
| format | Article |
| id | upm-13294 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T07:53:20Z |
| publishDate | 2010 |
| publisher | Institute of Southeast Asian Studies |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-132942016-11-15T01:01:14Z http://psasir.upm.edu.my/id/eprint/13294/ Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia Sufian, Fadzlan Habibullah, Muzafar Shah The paper seeks to examine the determinants of Indonesian banks profitability during the period 1990–2005. The empirical findings indicate that income diversification and capitalization are positively related to bank profitability, while size and overhead costs exert negative impacts. During the period under study, Indonesian banks seem to have been skimping on their resources, particularly during the pre-crisis and crisis periods. The impact of economic growth and banking sector concentration are positive during the pre-crisis and crisis periods. We find that the Asian financial crisis exerts negative and significant impact on the profitability of Indonesian banks, while Indonesian banks have been relatively more profitable during the pre-crisis compared to the post-crisis and crisis periods. Institute of Southeast Asian Studies 2010-12 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/13294/1/Assessing%20the%20impact%20of%20financial%20crisis%20on%20bank%20performance%20empirical%20evidence%20from%20Indonesia.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2010) Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia. ASEAN Economic Bulletin, 27 (3). pp. 245-262. ISSN 0217-4472; ESSN: 1793-2831 http://muse.jhu.edu/journals/ase/summary/v027/27.3.sufian.html 10.1353/ase.2010.0023 |
| spellingShingle | Sufian, Fadzlan Habibullah, Muzafar Shah Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia |
| title | Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia |
| title_full | Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia |
| title_fullStr | Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia |
| title_full_unstemmed | Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia |
| title_short | Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia |
| title_sort | assessing the impact of financial crisis on bank performance: empirical evidence from indonesia |
| url | http://psasir.upm.edu.my/id/eprint/13294/ http://psasir.upm.edu.my/id/eprint/13294/ http://psasir.upm.edu.my/id/eprint/13294/ http://psasir.upm.edu.my/id/eprint/13294/1/Assessing%20the%20impact%20of%20financial%20crisis%20on%20bank%20performance%20empirical%20evidence%20from%20Indonesia.pdf |