Performance Evaluation of Indonesian Banks and Foreign Banks Operating in Indonesia Related to Classification of Capital
- DOI
- 10.2991/gcbme-16.2016.18How to use a DOI?
- Keywords
- Bank's Performance, Core capital, Non-Performing Loans, Net Interest Margin
- Abstract
This study was undertaken to prove the public perception that bigger banks are more difficult to bankrupt than smaller banks through performance evaluation of Indonesian banks and foreign banks operating in Indonesia related to classification of capital. The study was conducted using secondary data obtained from Info bank. Overall there were 120 banks evaluated, either local banks belonging to the various classifications of books as well as foreign banks operating in Indonesia. As the research variables are the bank's core capital, Non-Performing Loan (NPL) and Net Interest Margin (NIM). Grouping of banks has done according to the rules of Indonesia Bank (BI) on commercial banks business activities (books). Tests were performed using descriptive statistics, One Way ANOVA and Post Hoc Test. The results obtained indicate that banks with more capital and also foreign banks are not more able to reduce their credit risk and also not show better ability to produce gains than local banks with smaller capital. The findings of this study indicate the success of the Indonesia Bank (BI) as the Indonesian banking regulatory authority to equate the performance of banks operating in Indonesia.
- Copyright
- © 2016, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Sugiarto Sugiarto PY - 2016/08 DA - 2016/08 TI - Performance Evaluation of Indonesian Banks and Foreign Banks Operating in Indonesia Related to Classification of Capital BT - Proceedings of the 2016 Global Conference on Business, Management and Entrepreneurship PB - Atlantis Press SP - 104 EP - 108 SN - 2352-5428 UR - https://doi.org/10.2991/gcbme-16.2016.18 DO - 10.2991/gcbme-16.2016.18 ID - Sugiarto2016/08 ER -