SHOULD BANK DIVERSIFY THEIR INCOME AND CREDIT? EVIDENCE FROM INDONESIA BANKING INDUSTRY

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UEU » Journal » Akuntansi
Posted by [email protected] at 01/11/2021 14:53:15 • 310 Views

SHOULD BANK DIVERSIFY THEIR INCOME AND CREDIT? EVIDENCE FROM INDONESIA BANKING INDUSTRY

Haruskah Bank Mendiversifikasi Pendapatan dan Kreditnya? Bukti dari Industri Perbankan Indonesia

Created by :
Jul Aidil Fadli ( 0307079003 )

Subject:	KEUANGAN PERBANKAN
Alt. Subject :	FINANCE BANKING
Keyword:	bank credit diversify interest income

Description:

This study aims to examine the effect of income and credit diversification toward bank risk and performance. In this study, diversification was measured using Adjusted Herfindahl-Hirschman Index (AHHI). Bank risk is measured by the standard deviation of ROA, standard deviation of ROE, Z-Score, Nonperforming Loan and Beta. Meanwhile, bank performance is measured by Return on Assets, Return on Equity, risk adjusted ROA and risk adjusted ROE. The robustness test completes this study by dividing the sample into low and high diversified bank. By using panel data of 53 listed and non listed Indonesian banks from 2011 to 2015, the results show that banks get benefit through the implementation of income diversification. Conversely, banks are badly affected through the implementation of loan diversification as it can increase risk and decrease bank performance. The results suggest bank to maximize income diversification by increasing the proportion of non-interest income in the income structure. Furthermore, banks should focus credit distribution that best suits their capabilities.

Date Create	:	01/11/2021
Type	:	Text
Format	:	pdf
Language	:	Indonesian
Identifier	:	UEU-Journal-11_1989
Collection ID	:	11_1989

Source :
KINERJA Volume 23, No. 1, 2019 Page. 28-41

Relation Collection:
Fakultas Ekonomi dan Bisnis

Coverage :
Civitas Akademika Universitas Esa Unggul

Rights :
@2021 Perpustakaan Universitas Esa Unggul

Publication URL :
https://digilib.esaunggul.ac.id/should-bank-diversify-their-income-and-credit-evidence-from-indonesia-banking-industry-22349.html

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