Financial performance efficiency of Indonesia government banks in improving profitability Online publication date: Tue, 01-Aug-2017
by Selamet Riyadi
International Journal of Financial Innovation in Banking (IJFIB), Vol. 1, No. 3/4, 2017
Abstract: Macro economic factors are commonly being considered as useful indicators for predicting the trajectories of state-owned banks' earning. To explore and learn about the relationship between Indonesian state-owned banks' performance efficiency and their effects on the state of profitability, this study observes and analyses measured and correlated year to year earning changes and financial ratio in the period of 2007-2015. Data sample consisting of four state-owned banks are collected and analysed in this research by incorporating the panel regression approach with fixed effects models. Results of conducted analysis confirm that the net interest margin (NIM) and loan to deposit ratio (LDR) are exposing significant effect to both the earnings changes and the return on equity (ROE), whilst the capital adequacy ratio (CAR), return on asset, the national interest rate and the Indonesian exchange rate against the US dollar was not found to expose any significant effect.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Financial Innovation in Banking (IJFIB):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook