scholarly journals FAKTOR YANG MEMPENGARUHI NON PERFORMING LOAN PADA BANK DI INDONESIA

2018 ◽  
Vol 3 (01) ◽  
Author(s):  
Farah Margaretha ◽  
Vanya Kalista
Keyword(s):  
Commercial Banks ◽  
Budget Constraint ◽  
Financial Capital ◽  
Soft Budget Constraint ◽  
Credit Growth ◽  
Deposit Rate ◽  
Purposive Sampling ◽  
Cost Inefficiency ◽  
The Cost ◽  
Reserve Ratio

FAKTOR YANG MEMPENGARUHI NON PERFORMING LOAN PADA BANK DI INDONESIAAbstrak Penelitian ini bertujuan untuk mengetahui pengaruh cost inefficiency, financial capital, loans to assets ratio, bank size, good performance, credit growth, soft budget constrain, deposit rate, dan reserve ratio terhadap non- performing loan pada bank umum swasta nasional devisa dan non devisa di Indonesia periode 2009-2012. Variabel independen (x) yang diteliti adalah cost inefficiency, financial capital, loans to assets ratio, bank size, good performance, credit growth, soft budget constrain, deposit rate, dan reserve ratio, sedangkan variable dependen (y) adalah non-performing loan. Jumlah sampel yang digunakan adalah 31 bank dengan metode purposive sampling. Hasil empiris dari penelitian ini menunjukkan bahwa bank size dan soft budget constrain memiliki pengaruh terhadap non-performing loan secara signifikan, sedangkan cost inefficiency, financial capital, loans to assets ratio, good performance, credit growth, deposit rate, dan reserve ratio tidak memiliki pengaruh terhadap non-performing loan. Hal ini mengindikasikan bahwa ukuran suatu bank dapat meningkatkan tingkat non-performing loan bank tersebut. Sedangkan pemberian soft budget constrain terhadap kredit dapat menurunkan tingkat non-perfoming loan. Manajer bank dapat memanfaatkan hasil penelitian untuk mengontrol sebaran kredit yang diberikan dan mengelola resiko kredit denga nmemberi suku bunga rendah. Kata kunci: Bank Size, Credit, Non-performing loan,Performance, Soft Budget Constrain. INFLUNCE FACTORS ON NON-PERFORMING LOANS OF COMMERCIAL BANKS IN INDONESIA Abstract This study aims to determine the effect of cost inefficiency, financial capital, loans to assets ratio, bank size, good performance, credit growth, soft budget constraint, deposit rate, and reserve ratio against non-performing loans of commercial banks in Indonesia 2009-2012. Independent variables in this study (x) are the cost inefficiency, financial capital, loans to assets ratio, bank size, good performance, credit growth, soft budget constraint, deposit rate, and reserve ratio, while the dependent variable (y) is non-performing loan. The samples used were 31 banks with purposive sampling method. The empirical results of this study indicate that bank size and soft budget constraint has no effect on non-performing loans significantly, while the cost inefficiency, financial capital, loans to assets ratio, good performance, credit growth, deposit rate, and reserve ratio has no influence against non-performing loans. This indicates that the size of a bank can increase the level of non- performing loans of the banks. While giving credit with the soft budget constraint may reduce the level of non- performing loan. Bank managers can use the results of research to control the distribution of loans and manage credit risk by giving low interest rate. Keywords: Bank Size, Credit, Non-performing loan,Performance, Soft Budget Constrain.

scholarly journals Central banks: Hesitant guardians of equilibrium

2018 ◽  
Vol 68 (s1) ◽  
pp. 125-139
Author(s):  
Jerzy Hausner ◽  
Andrzej Sławiński
Keyword(s):  
Monetary Policy ◽  
Best Practice ◽  
Financial System ◽  
Central Banks ◽  
Budget Constraint ◽  
Soft Budget Constraint ◽  
Intellectual Heritage ◽  
Inherent Tendency

In our paper we focus on situations when central banks have to conduct monetary policy in a world in which they cannot rely fully on what is regarded the best practice and they have to cope with financial system inherent tendency to be unstable. Both phenomena are rooted in János Kornai’s intellectual heritage highlighting that economy tends to divert from equilibrium and that soft budget constraint erodes economic actors’ behavior.

scholarly journals Employment Protection and Banking Power: Evidence from Adoption of Wrongful Discharge Laws

2021 ◽  
Vol 13 (4) ◽  
pp. 1635
Author(s):  
Desheng Yin ◽  
Xinting Zhen
Keyword(s):  
Risk Taking ◽  
Commercial Banks ◽  
Vital Role ◽  
Sustainable Growth ◽  
Employment Protection ◽  
Labor Costs ◽  
Bank Efficiency ◽  
Exogenous Shock ◽  
Wrongful Discharge ◽  
Cost Inefficiency

Human capital and labor costs are crucial for the sustainable growth of organizations, and take a vital role in affecting bank efficiency and banking power. This research empirically investigates whether labor employment protection affects banking power. The analysis exploits the staggered adoption of Wrongful Discharge Laws (WDLs) as a quasi-exogenous shock to employment protection. A Difference-In-Difference research design is implemented to study the impacts of WDLs on banking power, and the main results show that there exists a decline of banking power for commercial banks headquartered in states that adopt employment protection. This study further tests the main mechanism through which WDLs affect banking power and finds that the impaired banking power is primarily due to cost inefficiency but not profit inefficiency. Moreover, the adoption of wrongful discharge laws increases commercial banks’ labor costs and induces bank risk-taking.

THE FOREIGN BANK EFFECT ON VALUE CREATION IN COMMERCIAL BANKS INCORPORATED IN THAILAND

2008 ◽  
Vol 53 (02) ◽  
pp. 215-244
Author(s):  
CHANTAL HERBERHOLZ
Keyword(s):  
Performance Measures ◽  
Commercial Banks ◽  
Economic Value ◽  
Value Added ◽  
Foreign Bank ◽  
Level Data ◽  
Beneficial Impact ◽  
Domestic Banks ◽  
The Cost ◽  
Traditional Performance

Using quarterly bank-level data over the period 1997–2005, this paper examines the effect of foreign bank presence on commercial banks incorporated in Thailand, using traditional and value-based performance measures as indicators of the degree of competition and proxies for the efficiency in the provision of banking services. The findings suggest that foreign bank presence is not only beneficial in terms of traditional performance measures, but also in terms of economic profit. The results with respect to economic value added and cash value added, however, cast some doubt over the presumed benefits of opening up, underlining the importance of using a proxy that considers the cost of equity and departs from standard accounting principles. Furthermore, the results indicate that foreign entry through the acquisition of domestic banks appears to have a stronger and more beneficial impact on locally incorporated banks than through the establishment of branches, with majority ownership by a foreign blockholder being of importance.

THE EFFECT OF THE SHARIA SUPERVISORY BOARD AND THE BOARD OF COMMISSIONERS ON THE FINANCIAL PERFORMANCE OF SHARIA COMMERCIAL BANKS IN INDONESIA

2021 ◽  
Vol 3 (1) ◽  
pp. 60-73
Author(s):  
Ahmad Fauzul Hakim Hasibuan ◽  
Fuadi Fuadi ◽  
Angga Syahputra
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Commercial Banks ◽  
Supervisory Board ◽  
Secondary Data ◽  
Sampling Technique ◽  
Islamic Banks ◽  
Purposive Sampling ◽  
Islamic Bank

This study aims to determine the influence of the Sharia Supervisory Board and the Board of Commissioners on the Financial Performance of Islamic Banks in Indonesia. This study used secondary data from 12 banks.The sampling technique used is the purposive sampling technique. The method of data analysis used is multiple linear regression.The results partially show that the sharia supervisory board and board of commissioners positively and significantly influence the financial performance of Islamic banks in Indonesia. Simultaneously,the board of commissioners and the sharia supervisory board positively and significantly influence the financial performance of Islamic bank

Commercial Banks Credit and the Performance of Real Sector in Nigeria: 1990-2017

2020 ◽  
pp. 1-15
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Agricultural Sector ◽  
Manufacturing Sector ◽  
Bank Lending ◽  
Real Sector ◽  
Agricultural Credit ◽  
The Real ◽  
Scientific Discussion ◽  
The Cost

The study examined the arguments and counterarguments within the scientific discussion on commercial banks credit and the performance of real sector in Nigeria. The main objective of the study is to examine the effect of commercial banks credit on the performance of the real sector in Nigeria.Data was sourced from Central Bank of Nigeria Statistical Bulletin. A systematization literary approach for data analysis was Regression Analysis. Findings revealed that bank credit and bank lending rate does not have significant impact on real sector performance in Nigeria. It was showed that there was a positive and significant relationship between agricultural credit guarantee scheme fund and agricultural production in Nigeria. The study therefore recommends that banks should be directed to channel their credits towards the real sector to facilitate overall economic growth and development in Nigeria. It was recommended that there is the need policies that will favor the revamp of the agricultural sector in Nigeria should be given pride of place. Also, monetary authority through the Central Bank of Nigeria should create adequate policies and strategies towards deepening of the financial sector and reducing the cost of credit/loans so as to enhance productivity and consequently enhance the growth of the key sectors of economy such as manufacturing sector.

Innovation in centralized organizations: examining evidence from Soviet Russia

2014 ◽  
Vol 41 (1) ◽  
pp. 123-139 ◽  
Author(s):  
Dmitriy Chulkov
Keyword(s):  
Decision Making ◽  
Empirical Evidence ◽  
Budget Constraint ◽  
Soviet Economy ◽  
Decision Makers ◽  
Economic Systems ◽  
Soft Budget Constraint ◽  
Content Type ◽  
Economic Decision Making ◽  
Constraint Model

Purpose – This study aims to examine the economic factors that determine innovation pattern in centralized and decentralized economies and organizations. Design/methodology/approach – Empirical evidence on innovation in the centralized economy of the Soviet Union is reviewed. Existing theoretical literature in this area relies on the incentives of decision-makers in centralized organizations and on the concept of soft budget constraint in centralized command economies and hard budget constraint in market economies. This study advocates applying the hierarchy/polyarchy model of innovation screening to explain the pattern of innovation in centralized economic systems. Findings – Screening and development of innovation projects can be organized in a centralized or decentralized fashion. The differences in innovation between centralized and decentralized economic systems may be explained by elements of the principal-agent theory, the soft budget constraint model, and the theory of decision-making in hierarchies and polyarchies. Empirical evidence shows a sharp slowdown in both innovation and economic growth in the Soviet economy following the economic decision-making reform of 1965. The theoretical explanation most consistent with this evidence is the hierarchy decision-making model. Originality/value – Comparisons of innovation in centralized and decentralized economies traditionally relied on decision-makers' incentives and the concept of soft budget constraint. Upon analysis of empirical evidence from the centralized Soviet economy, this study advocates explaining innovation patterns based on decision-making theory of hierarchy.

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