The Impact of Mergers on the Performance of Conventional Banks in Indonesia

DOI

10.2991/aebmr.k.220501.068How to use a DOI?

Keywords

Merger; bank performance; bank health level

Abstract

Merger is one of the efforts to increase the company’s growth non-organically which requires large costs and better management capabilities. This study aimed to determine the impact of mergers on bank performance, which indirectly affects the bank health level. The subjects of this research were 12 conventional banks in Indonesia which have merged horizontally from 2007 to 2019. The variables in this study are those related to bank performance improvement, such as risk-based bank-rating ratio. The results show that there is no difference between bank performance, credit level, operational level, and capital level between before and after the merger. By conducting the merger, it turns out that the average bank performance does not have a positive impact, and this is related to the increase in credit level, operational level, and liquidity level, which are not aligned with an increase in market risk and bank capital level.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Margarita Ekadjaja
AU  - Halim Putera Siswanto
AU  - Rorlen Rorlen
PY  - 2022
DA  - 2022/05/11
TI  - The Impact of Mergers on the Performance of Conventional Banks in Indonesia
BT  - Proceedings of the tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)
PB  - Atlantis Press
SP  - 448
EP  - 452
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220501.068
DO  - 10.2991/aebmr.k.220501.068
ID  - Ekadjaja2022
ER  -