Which is More Influential? Internal Factors or External Factors of Banks on the Profitability of Conventional Banks
DOI:
https://doi.org/10.47065/arbitrase.v4i2.1430Keywords:
Loan to Deposit Ratio; Non-Performing Loans; Inflation; Exchange Rate; Bank Profitability; Return of AssetsAbstract
This study looks at how macroeconomic variables such as inflation and exchange rates, as well as internal issues such as bad debts and loan-to-deposit ratio, affect bank profitability as determined by return on assets. Using the eviews 12.0 program, panel data regression is used as an analytical tool in this study. There are 47 banks in Indonesia listed on the Indonesia Stock Exchange between 2018 and 2022. The results concluded that External factors are factors that have a stronger influence on profitability because after testing simultaneously there are two significant variables, namely inflation and exchange rates and for internal factors only one variable, namely non-performing loans so that external factors are stronger on the profitability of conventional banks in the Indonesian Stock Exchange.
Downloads
References
Abdelaziz, H., Rim, B., & Helmi, H. (2022). The Interactional Relationships Between Credit Risk, Liquidity Risk and Bank Profitability in MENA Region. Global Business Review, 23(3), 561–583. https://doi.org/10.1177/0972150919879304
Amrillah, M. F. (2020). Pengaruh Nilai Tukar Rupiah (Kurs), Inflasi dan Pertumbuhan Ekonomi Terhadap Return Saham Pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2008-2014. Jurnal Valuta, 2(2), 232–250. www.yahoo.finance.com,
Andiansyah, G. dkk. (2020). Pengaruh CAR, NPL, BOPO , Dan LDR Terhadap ROA Dengan NIM Sebagai Variabel Intervening (Studi Pada Bank Yang Go Publik Di Bursa Efek Indonesia Periode Tahun 2015-2018). Proceeding SENDIU 2020, 560–567.
Bahjat, S. N., Hussain, A. M., & ... (2022). Measuring the Effect of Foreign Currency Exchange Rate on Bank’s Financial Performance with Early IFRS 9 Compliance. … and Business …, April. https://globalresearchnetwork.us/index.php/ajebm/article/download/935/821
Dsouza, S., Rabbani, M. R., Hawaldar, I. T., & Jain, A. K. (2022). Impact of Bank Efficiency on the Profitability of the Banks in India: An Empirical Analysis Using Panel Data Approach. International Journal of Financial Studies, 10(4). https://doi.org/10.3390/ijfs10040093
Goenawan, S. I. (2019). Cara Legal Melipatgandakan Bunga Bank dan Nisbah Bank Syariah (Cet. 1).
Gumbo, L., Mveku, B., Simon, C., Mutero, T. T. ., & Barangwe, K. (2022). The Effect Of Exchange Rate Fluctuations On Bank Profitability In Zimbabwe. Global Scientific Journals, 10(6), 797–810.
Hediati, N. D., & Hasanuh, N. (2021). Capital adequacy ratio , non performing loan. COSTING:Journal of Economic, Business and Accounting, 4(2), 580–590.
Kasmir. (2018). Manajemen Perbankan. Raja Grafindo Persada.
Khalik, A. (2018). Pengaruh loan to deposit ratio terhadap profitabilitas pada PT Bank Rakyat Indonesia. AKMEN Jurnal Ilmiah, 13(4), 784–794.
Lotfalipour, M. R., & Bazargan, B. (2020). The Impact of Exchange Rate volatility on Banking Performance (case of Iran). Advances in Economics and Business, 2(8), 293–302. https://doi.org/10.13189/aeb.2014.020801
Martiningtiyas, C. R., & Nitinegeri, D. T. (2020). The Effect of Non-Performing Loans on Profitability in Banking Sector in Indonesia. 151(Icmae), 64–67. https://doi.org/10.2991/aebmr.k.200915.016
Murwaningsari, E. (2019). Analysis of the Effect of Loan to Deposit Ratio , Non Performing Loan & Capital Adequacy Ratio in Profitability ( Empirical study of conventional banking companies listed in IDX period 2014 – 2017 ). 1(2).
Nurfitriani, I. (2021). Pengaruh Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), dan Loan to Deposit Ratio (LDR) Terhadap Return On Asset (ROA) Pada PT Bank Muamalat Indonesia. Jurnal At-Tamwil: Kajian Ekonomi Syariah, 3(1), 50–67. https://doi.org/10.33367/at.v2i3.1453
Oktavia, C., & Musdholifah. (2018). PENGARUH FAKTOR INTERNAL, MAKROEKONOMI, DAN KONSENTRASI PANGSA PASAR TERHADAP PROFITABILITAS BANK UMUM KONVENSIONAL DI INDONESIA PERIODE 2012-2016. 6, 213–226.
Ozili, P. K. (2019). Non-performing loans and financial development: new evidence. Journal of Risk Finance, 20(1), 59–81. https://doi.org/10.1108/JRF-07-2017-0112
Poniman, E., & Saragih, J. R. (2022). Pengaruh Loan to Deposit Ratio , Kredit Macet dan Capital Adequacy Ratio Terhadap Profitabilitas. 6, 1083–1092.
Prastiwi, I. E. (2022). Macro Economy Effect On Islamic Banking Profitability In Indonesia. 8(03), 3394–3400.
Purwanty, W. (2018). Pengaruh Loan To Deposit Ratio (LDR) Dan Ukuran Perusahaan Terhadap Profitabilitas (ROA) (Survey Pada Perusahaan Perbankan Swasta Yang Terdaftar Di Bursa Efek Indonesia Periode 2013-2016). Other Thesis, Universitas Komputer Indonesia., 1–8.
Purwoko, D., & Sudityatno, B. (2019). Faktor-Faktor yang Mempengaruhi Kinerja Bank (Studi Empirik pada Industri Perbankan di Bursa Efek Indonesia). Jurnal Bisnis Dan Ekonomi, 20(1), 25–39.
Rizal, R., Marlion, F. A., Pasrizal, H., & Anita, R. (2021). Internal and External Factors E?ects towards Return on Assets in Indonesian Foreign Exchange Sharia Bank. Muqtasid: Jurnal Ekonomi Dan Perbankan Syariah, 12(1), 49–62. https://doi.org/10.18326/muqtasid.v12i1.49-62
Rumengan, A. W., Tommy, P., & Taroreh, R. (2019). Tingkat Inflasi, Suku Bunga, Earning Pershare, Dan Devidend Payout Ratio Pengaruhnya Terhadap Harga Saham Perusahaan Telekomunikasi Yang Go Public Di Bursa Efek Indonesia. Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 3(3), 757–765.
Samosir, N. M., & Muchtar, S. (2020). The Effect of Funding Liquidity on Risk Taking Behaviour of Conventional Banks. Jurnal Manajemen, 24(1), 139. https://doi.org/10.24912/jm.v24i1.635
Sasmita, D., Andriani, S., & Ilman, A. H. (2018). Analisis Pengaruh Inflasi, Suku Bunga Bi, Nilai Tukar Rupiah Terhadap Profitabilitas (Studi Kasus Pada Bank Yang Terdaftar Di Bei Periode 2011-2015). Jurnal Ekonomi Dan Bisnis Indonesia, 3(1), 1–7. https://doi.org/10.37673/jebi.v3i1.379
Singh, S. K., Basuki, B., & Setiawan, R. (2021). The Effect of Non-Performing Loan on Profitability: Empirical Evidence from Nepalese Commercial Banks. Journal of Asian Finance, Economics and Business, 8(4), 709–716. https://doi.org/10.13106/jafeb.2021.vol8.no4.0709
Sunarti. (2018). Perbankan Konvensional Versus Perbankan Syariah dalam Realitas Sosioligisnya. Japanese Society of Biofeedback Research, 19, 709–715. https://doi.org/10.20595/jjbf.19.0_3
Suwikyo, D. (2018). Analisis Laporan Keuangan Perbankan Syariah. Pustaka Pelajar.
Thalassinos, E. I., & Thalassinos, Y. (2019). Financial Crises and e-Commerce: How Are They Related. SSRN Electronic Journal, 1–15. https://doi.org/10.2139/ssrn.3330169
Tumewang, Y. K., Isnaini, R. N., & Musta’in, J. L. (2019). The impact of macro economy toward profitability of Islamic bank. Asian Journal of Islamic Management (AJIM), 1(2), 101–108. https://doi.org/10.20885/ajim.vol1.iss2.art4
Yeasin, H. M. (2022). Impact of credit risk management on financial performance: A study of commercial banks in Bangladesh. Interdisciplinary Journal of Applied and Basic Subjects, 2(1), 14–22. www.visnav.in/ijabs/
Yusriadi. (2022). Bank Syariah dan Konvensional (Suatu Analisis Perbedaan dan Prinsip-prinsipnya). SYARAH?: Jurnal Hukum Islam, 11(2).
Bila bermanfaat silahkan share artikel ini
Berikan Komentar Anda terhadap artikel Which is More Influential? Internal Factors or External Factors of Banks on the Profitability of Conventional Banks
ARTICLE HISTORY
Issue
Section
Copyright (c) 2023 Juan Carlos, Sri Indah Nikensari, Siti Fatimah Zahra
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under Creative Commons Attribution 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (Refer to The Effect of Open Access).
