The Influence of Macroeconomic Indicators on Profitability

• 발행기관: 한국유통과학회
• 저자명: I Gede Cahyadi PUTRA Luh Gde NOVITASARI I Nyoman Kusuma MAHAPUTRA I Made SUDIARTANA
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.6, 79~87쪽, 전체 9쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.06.30

영문 초록

Regional banks are said to be the backbone of any economy as it has a direct bearing with financial and economic development. Profitability of the banks, especially in regional banks, is imperative, since it leads to the financial stability of a nation. This study investigates factors affecting the profitability of 189 Regional Development Banks with research information from 2012 to 2020. The results of the study show that external factors have a positive and very significant effect on profitability, meaning that economic growth, inflation, and bank certification are important in increasing the profitability of Regional Development Banks (RDBs). Internal factors give a large negative value when a large bank provides minimal profitability. Government intervention will reduce the profitability value. The Policies of Bank Indonesia and the Financial Services Authority (FSA) have a positive effect on RDBs’ profitability but are not a major factor. The findings of this study suggest banks receive a major part of their net income from interest income but they can also earn income from non-interest income that makes a big contribution to bank profitability. The study results however show that banks non-interest income does not have an optimal effect on the banks’ profitability although interest income optimally impact banks’ profitability.

목차

1. Introduction

2. Literature Review

3. Research Method

4. Results

5. Discussion

6. Conclusion

키워드

Internal Factors External Factors Intervention Profitability