PENGARUH TINGKAT SUKU BUNGA PINJAMAN DAN VOLUME PINJAMAN TERHADAP RETURN ON ASSETS (ROA) PADA PT. BPR MITRA DAYA MANDIRI PERIODE TAHUN 2008 SAMPAI 2010

2019 ◽  
Vol 8 (02) ◽  
pp. 39
Author(s):  
Rizki Ahmad Fauzi
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Interest Rates ◽  
Statistical Tests ◽  
National Development ◽  
Bank Loans ◽  
Rate Of Return ◽  
Return On Assets ◽  
Banking Business ◽  
Business Function

Bank as a business organization has become a tool and a means of supporting the liquidity of the business , as a consequence, banks are required to become a business organisasasi proper and prudent in the distribution of funds in the form of credit . It has been recognized correctly by the community because the business function other than as a financial intermediary bank , also the agent of development that have an obligation to support the equitable distribution of national development efforts . Thus the function of banking business as the source of funds and lending function must be balanced in order to create proper banking .Interest Rate Loans positive and significant impact on Return on Assets ( ROA ) . This suggests that the higher the Loan Interest Rate Return on Assets ( ROA ) acquired banks will be even greater because of the higher Interest Rate Loans , the greater the income received from the debtor banks because the rate of return on bank loans . The greater the bank's profitability ( ROA ) obtained by the bank , which means the financial performance has improved or increasedVolume of Loans positive and significant impact on Return on Assets ( ROA ) . This suggests that the greater the volume of loans then Return on Assets ( ROA ) acquired banks will be even greater because of the greater volume of loans , the higher the income received from the debtor banks because the rate of return on bank loans . The greater the bank's profitability ( ROA ) obtained by the bank , which means the financial performance has improved or increased . Adjusted R Square value of 0.121 indicates that 12.1 % of the dependent variable of financial performance proxied by ROA can be explained by the two independent variables , namely interest rates and credit and loan volumes , while the remaining 87.9 % is explained by other factors outside the regression model analyzed . This study did not escape from the limitations . Limitations contained in this research can be seen from the value of Adjusted R Square which can only explain 12.1 % or a fraction of the variance of dependent variable , while 87.9 % is influenced by other factors that are not included in the model so that there are many variables that influence but not included in this model . Given the tremendous influence of the independent variable on the dependent variable , it is suggested the need for caution in generalizing the results of this study . Based on the results of statistical tests , the three variables that partially have a significant effect , Interest Rate Loans has the highest influence on ROA , as evidenced by the Beta value of the variable size of the company showed a number greater volume of loans amounting to 1,050 .Keywords : loan rates , loan volume , return on assets

Examining the financial performance of agricultural cooperatives in the USA

2019 ◽  
Vol 79 (2) ◽  
pp. 271-282 ◽  
Author(s):  
Krishna Prasad Pokharel ◽  
Madhav Regmi ◽  
Allen M. Featherstone ◽  
David W. Archer
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Financial Stress ◽  
Rate Of Return ◽  
Agricultural Cooperatives ◽  
Return On Assets ◽  
Real Rate ◽  
Content Type ◽  
Return On Equity ◽  
The Real

Purpose The purpose of this paper is to identify financial stress and the causes of financial stress for agricultural cooperatives and provide management recommendations to stakeholders including cooperatives’ managers, boards of directors and lenders. Design/methodology/approach This research used the geometric mean of the real rate of return on equity to identify financially stressed agricultural cooperatives. The real rate of return on equity allows the allocation of total financial stress among the return on assets, leverage and interest rate issues. Findings This study found that financially non-stressed agricultural cooperatives had a higher rate of return on equity and rate of return on assets, but lower leverage ratios and interest rates than stressed agricultural cooperatives. Further, non-stressed cooperatives had higher total assets and sales compared to stressed cooperatives. This suggests that smaller cooperatives are more likely to face financial stress than larger cooperatives. The decomposition of the financial problem showed that a substantial percentage of financial stress was correlated with a low return on assets or profitability. A smaller percentage of financial stress was due to financing decisions. Originality/value This study provides value by measuring the impact of profitability, leverage and interest rate on the financial performance of agricultural cooperatives. Results showed that a substantial proportion of financial stress was associated with a low return on assets. This indicates that profitability is a problem for agricultural cooperatives. This study also examines profitability during a period of volatile returns in production agriculture.

Negative Interest Rate Policy as Conventional Monetary Policy

2015 ◽  
Vol 234 ◽  
pp. R5-R14 ◽  
Author(s):  
Miles S. Kimball
Keyword(s):  
Economic Theory ◽  
Interest Rate ◽  
Interest Rates ◽  
Real Interest Rate ◽  
Rate Of Return ◽  
Interest Rate Policy ◽  
Paper Currency ◽  
Rate Policy ◽  
Standard Models ◽  
Negative Interest Rate Policy

As long as all interest rates move in tandem – including the rate of return on paper currency – economic theory suggests no important difference between interest rate changes in the positive region and interest rate changes in the negative region. Indeed, in standard models, only the real interest rate and spreads between real interest rates matter. Thus, in most respects, negative interest rate policy is conventional. It is only (a) what needs to be done with paper currency, (b) difficulties in understanding negative rates or (c) institutional features interacting with negative rates that make negative interest rate policy unconventional.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI PENETAPAN MARGIN MURABAHAH PEMBIAYAAN KONSUMTIF DI BANK KALTIM SYARIAH

2014 ◽  
Vol 4 (2) ◽  
pp. 151
Author(s):  
Kenda Satya
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Influential Factors ◽  
Production Costs ◽  
Coefficient Of Determination ◽  
Selling Price ◽  
Multiple Linear Regressions ◽  
Return On Assets ◽  
The Interest Rate ◽  
Linear Regressions

This research was proposed to discover the influential factors on consumptive financing murabahah (a contract of sale of goods with the agreement on selling price and profit earned between the seller and the buyer) margin in Kaltim Sharia bank. The research instrument that had been used was the multiple linear regressions, correlation coefficient, coefficient of determination, as well as the classical assumption. Based on the analysis, the results showed that 1) Variable of Financing Deposit Ratio (X1), Return on Assets (X2), Inflation (X3) and the interest rate (X4) gave significant effect on murabahah margin Bankaltim Sharia (Y) simultaneously. The initial analysis confirmed that the first hypothesis was accepted and proven accurate because the value of probability was less than (<)0.05 namely 0.000; 2) Moreover, the next investigation found that inflation (X3) was the most dominant variable in this study for its Inflation beta value was more than (>)FDR beta value (X1), ROA (X2), and interest rates (X4) which means that the second hypothesis was rejected due to higher inflation would extensively increase production costs and prices of goods / services. Consequently, the purchasing power will decline and subsequently murabahah financing demand would automatically decreasing as well that ultimately results in reduced margins of murabahah.

Financial Performance of Tourism Businesses in Labuan Bajo Tourist Area, Indonesia

2021 ◽  
Vol 12 (2) ◽  
pp. 458
Author(s):  
Edhie Baskoro YUDHOYONO ◽  
Hermanto SIREGAR ◽  
Noer Azam ACHSANI ◽  
Tony IRAWAN
Keyword(s):  
Information Technology ◽  
Performance Analysis ◽  
Financial Performance ◽  
National Development ◽  
Bank Loans ◽  
For Profit ◽  
Long Time ◽  
Tourism Destinations ◽  
Government Data ◽  
Business Entities

Labuan Bajo is one of the tourism destinations that are prioritized in Indonesia's national development. However, the contribution of tourism in Labuan Bajo to the economy and welfare of the surrounding community is still less than optimal even though there have been many attempts to stand around the tourist area of Labuan Bajo. This study aimed to analyse the financial performance of tourism businesses in the tourist area of Labuan Bajo, which is one of the tourism destinations prioritized by the Indonesian government. Data was collected through a questionnaire distributed to 221 respondents of tourism business actors in the tourist area of Labuan Bajo. The results of this study revealed that tourism business actors in Labuan Bajo were quite diverse in terms of tourism business permits, business scale, and business entities. Also, the growth of tourism businesses in the tourist area of Labuan Bajo was quite significant in 2017-2018. The results of the financial performance analysis showed that the income was relatively high in tourism businesses that have been operating for a long time. They were funded by bank loans, had large capital, adopted information technology, and members of certain tourism organizations. In general, the financial performance of the tourism business in Labuan Bajo has not been optimal, particularly in managing assets for profit.

scholarly journals Evaluation of Banks' Interest Rate Risk: An Alternative Approach

2018 ◽  
Vol 5 (6) ◽  
pp. 111
Author(s):  
Jakob Lichtner ◽  
Marcus Riekeberg ◽  
Friedrich Thiessen ◽  
Thomas Maurer
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Yield Curve ◽  
Balance Sheet ◽  
Interest Rate Risk ◽  
Bank Loans ◽  
Bank Deposits ◽  
Rate Risk ◽  
Alternative Approach ◽  
Realistic View

Interest rate risk is often assessed through parallel yield curve shifts of 100, 200 or 400 basis points. In order to provide a more realistic view, we did simulations based on periods of growing interest rates that actually occurred in the past. These simulations show that non-bank deposits and non-bank loans react more strongly to rising interest rates than certain interbank and security positions. Existing research usually overestimates related risks slightly as it does not take the interest-elastic reactions of non-banks into account. We found three types of effects. Firstly, the direct earnings effect stems from changed market interest rates applied to constant balance sheet positions. This effect is typically measured by straightforward models. Secondly, to increase accuracy, we identified an indirect earnings effect. Customers react to interest rate changes, and therefore balance sheet positions increase or decrease. The size of this effect depends on how strongly they react, i. e. their interest elasticity. Thirdly, the induced earnings effect results from a bank’s reactions in an attempt to compensate for the changed business volume.

scholarly journals Determining Firm Value in the Indonesian Banking Sub Sector

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Henny Medyawati ◽  
◽  
Muhamad Yunanto ◽  
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Financial Performance ◽  
Interest Rates ◽  
Firm Value ◽  
Dividend Policy ◽  
Random Effect ◽  
Random Effect Model ◽  
Company Value ◽  
Effect Model

This study aims to find the most appropriate model for analysing the effect of financial performance, dividend policy, interest rates and the rupiah exchange rate on firm value. The research sample includes the banking sub-sector companies listed on the IDX in 2013-2019. The research method used is purposive sampling to analyse the panel data. The variables used in this study are the company value as measured by Price to Book Value (PBV), financial performance is measured by Return on Assets (ROA), dividend policy is measured by Dividend Pay-out Ratio (DPR), interest rate is measured by BI interest rate, and the rupiah exchange rate is measured by the middle rate. The results show that ROA and exchange rate affect firm value. The appropriate model used in this study is the random effect model.

scholarly journals PENGARUH NPL, ROA, DAN CAR TERHADAP PBV PADA BANK BUMN

2019 ◽  
Vol 14 (1) ◽  
pp. 19
Author(s):  
Siti Maimunah ◽  
Tasya Fahtiani
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Stock Exchange ◽  
Statistical Tests ◽  
T Test ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Book Value ◽  
Market Values ◽  
Company Value

<p><em>The main objective of the company is to maximize the value of the company that is used as a measure of the success of the company. Price to Book Value is a measurement of company value by looking at how much the market values the book value of its shares. Financial performance is one of the factors that influence company value. The better the financial performance, the better the value of the company. This study aims to examine the effect and to explain the effect of non-performing loans, return on assets and capital adequacy ratios simultaneously to the price to book value of state-owned banks listed on the Indonesia Stock Exchange in 2009-2017. This research was conducted at state-owned banks (Persero) listed on the IDX for the period 2009-2017. The sample used was 4 companies with saturated sample method. The analytical method used is quantitative analysis, in the form of testing hypotheses using statistical tests. The data were tested using Eviews version 10 with the selection of models in panel data, testing classical assumptions with normality tests, multicollinearity tests, heteroscedasticity tests and autocorrelation tests, panel data regression analysis, and hypothesis testing using the t test, F test and R2 test. The partial test results with the t test of obtaining non-performing loans have a negative effect on price to book value, return on assets and capital adequacy ratio do not affect price to book value. Simultaneously non-performing loans, return on assets and capital adequacy ratios affect price to book value.</em></p>

scholarly journals INFLUENCE OF INTEREST RATE ON THE FINANCIAL PERFORMANCE OF AGRICULTURAL FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE

2017 ◽  
Vol 1 (3) ◽  
pp. 19
Author(s):  
Dr. Samuel Kanga Odalo ◽  
Dr. George Achoki ◽  
Dr. Amos Njuguna
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Interest Rates ◽  
Financial Institutions ◽  
Secondary Data ◽  
Primary Data ◽  
Multivariate Regression Model ◽  
Interest Rate Spread ◽  
Using Data ◽  
The Interest Rate

Purpose: The purpose of this study was to establish to establish the influence of interest rate on the financial performance of agricultural firms listed at the Nairobi Securities Exchange.Methodology: The research design adopted was descriptive and causal (explanatory). A census approach was adopted and all the seven listed agricultural companies were taken as the population. The respondents’ sample was from finance departments at all levels and 220 questionnaires were administered. Primary data was collected using questionnaires while the secondary data was collected using data collection sheets from the firms as well as from the Nairobi Securities Exchange and CMA records. The particular inferential statistic was regression and correlation analysis. Panel data methodology was employed using a multivariate regression model to test the hypotheses and link the variables.Results: The findings revealed that interest rate has a positive and significant relationship with ROA, ROE and EPS. In addition, the findings from the interaction of the independent variables and the interest rate revealed that interest rate moderate the effect of financial performance of agricultural firms listed at the Nairobi Securities Exchange.Unique contribution to theory, practice and policy: The study recommends that financial institutions and banks in Kenya should assess their clients which include agricultural firms listed in NSE while setting up interest rates policies, as ineffective interest rate policies can increase the level of interest rates and consequently cost of borrowing and negate financial performance of the borrowing firms. The study also recommends that the Central Bank should apply stringent regulations on interest rates charged by financial institutions so as to regulate their interest rate spread.

scholarly journals Pengaruh Penyaluran Kredit Usaha Rakyat, Non Performing Loan,Tingkat Suku Bunga Bank Indonesia dan CAR Terhadap Profitabilitas (Studi Kasus Pada PT Bank Rakyat Indonesia (PERSERO) TBK Periode 2010-2017)

2019 ◽  
Vol 3 (1) ◽  
pp. 24
Author(s):  
Muhammad Andhika Wiranegara
Keyword(s):  
Interest Rates ◽  
Statistical Tests ◽  
Secondary Data ◽  
Financial Statements ◽  
Capital Adequacy ◽  
The Other ◽  
Return On Assets ◽  
Processing Application ◽  
Analysis Technique ◽  
Capital Adequacy Ratio

The purpose of this study was to determine whether the level of People's Business Credit distribution, non-performing loans, Bank Indonesia interest rates and CAR can affect the level of profitability (Return On Asset) of PT Bank Rakyat Indonesia (Persero) Tbk, this study using secondary data sourced from the quarterly financial statements in the period 2010-2017. In managing the data that is owned, the author uses the SPSS version 20 data processing application. The data analysis technique used is multiple linear regression and to test the hypotheses of this study using t-statistical tests to test hypotheses partially and f-statistical tests to test hypothetically simultaneous. From the results of the tests that have been carried out in the Business Credit distribution, the interest rates of Bank Indonesia and CAR do not partially affect Return On Assets, while the non-performing loans affect Return On Assets. Simultaneously, the variable of People's Business Credit distribution, non-performing loans, Bank Indonesia interest rates and CAR has an effect on Return On Asset of 71.4 percent and the other is influenced by variables other than those studied. Key notes : Kredit Usaha Rakyat, Non Performing Loan, tingkat suku bunga Bank Indonesia, Capital Adequacy Ratio, Return On Asset.

Impact of interest rates of bank loans on road construction: the case of Sri Lanka

2018 ◽  
Vol 16 (4) ◽  
pp. 518-532
Author(s):  
Manamgoda Gamage Nimantha Manamgoda ◽  
B.A.K.S. Perera ◽  
Colombapatabendige Savindi Ranthika Perera
Keyword(s):  
Interest Rate ◽  
Sri Lanka ◽  
Interest Rates ◽  
Road Construction ◽  
Debt Financing ◽  
Bank Loans ◽  
Bank Loan ◽  
Content Type ◽  
Road Projects ◽  
The Impact

Purpose Infrastructure systems play a dominant role in the economic growth of countries. Projects involved with the construction of roads, which is vital for the development of a country, are financed mainly using borrowed funds because of the reliability of debt financing. The cost of borrowing is the interest that has to be paid. In Sri Lanka, there is a high tendency for interest rates of bank loans to fluctuate, and this makes the road projects in the country that are funded with borrowed money to be highly risky. Thus, this paper aims to identify the impact of bank loan interest rates on road construction in Sri Lanka. Design/methodology/approach The study consisted of two questionnaire surveys conducted among financial specialists and road construction experts, followed by a documentary review. The collected data were analysed using Relative Importance Index. The relationship between the interest rates of bank loans and the prices of the resources used in road projects were determined using regression and correlation analyses. Findings The research revealed a strong, linear relationship between interest rate fluctuations and bitumen, aggregate base course, metal and earth price fluctuations. It also identified the pattern of interest rate fluctuations to help practitioners to predict the pattern of input price variations. Originality/value When developing the capital structure of road projects, it is necessary to consider the prices of materials used in the projects when determining the financial risks of debt financing.

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