The Performance of foreign Exchange National Private Bank Listed at the Indonesia Stock Exchange

Putri, Mashudiah Sainul and Purwanto, Edi (2021) The Performance of foreign Exchange National Private Bank Listed at the Indonesia Stock Exchange. International Journal of Finance and Commerce, 3 (2). 05-14. ISSN 2664-715X

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Abstract

Achieving high performance is essential for the companies, as well as banks. Many researchers believe that bank size, capital ratio, loan ratio, deposits, and loan loss provisions are important factor of bank performance. This paper investigates the effect of bank size, capital ratio, loan ratio, deposits, and loan loss provisions on bank performance to find the role of internal factors in achieving high performance. Regression analysis on panel data set comprising 52 observations of 13 Foreign Exchange National Private Bank listed in the Indonesia Stock Exchange (IDX) over the period 2013-2016. Not all the determinant variables in the model have statistically significant impacts on the Foreign Exchange National Private Bank's performance listed on the Indonesia Stock Exchange. Bank size, capital ratio, deposits, and loan loss provisions have statistically significant impacts on return on asset and equity. Bank size, capital ratio, and deposits have statistically significant effects on the net interest margin. However, the loan ratio does not have statistically significant impacts on return on asset, return on equity, and net interest margin. Then, loan loss provisions also do not have statistically significant effects on the net interest margin. The results offer fascinating insights into the characteristics and practices of profitable foreign exchange national private bank in Indonesia.

Item Type:	Artikel
Uncontrolled Keywords:	bank performance, profitability, bank size, capital ratio, loan ratio, deposit, loan loss provisions
Subjects:	A General Works > AC Collections. Series. Collected works
Divisions:	Universitas Pembangunan Jaya
Depositing User:	Alexandro Andika
Date Deposited:	09 May 2023 07:43
Last Modified:	14 Nov 2023 01:39
URI:	http://eprints.upj.ac.id/id/eprint/5096

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