FACTORS AFFECTING PERFORMANCE AND THE IMPACT ON CUSTOMER TRUST OF SYSTEMIC BANK IN INDONESIA PERIOD 2012-2017
Keywords:Non Performing Loan, Cost Income Ratio, Net Interest Margin, Capital Adequacy Ratio, Return on Asset, Bank Rating
The aim of this study was to analyze the factors that influence Performance and Its Impact on Customer Trust of Systemic Bank period 2012-2017. The independent variable of this study uses the financial ratio of Non-Performing Loans (NPL), Cost Income Ratio (CIR), Net Interest Margin (NIM), and Capital Adequacy Ratio (CAR). Performance measured by Return on Assets (ROA), and for the Customer Trust variable measured by Bank Rating. The study used panel data analysis and the process was using Eviews version 9.0. The results of the analysis in this study indicate that (1) NPL has a negative and not significant effect on ROA, (2) CIR has a negative and significant effect on ROA, (3) NIM has a positive and significant effect on ROA, (4). CAR has a negative and not significant effect on ROA, (5) NPL, CIR, NIM and CAR simultaneously have a positive and significant effect on ROA, (6) NPL has a positive and not significant effect on Rating. (7) CIR has a negative and not significant effect on Rating, (8) NIM has a negative and significant effect on Rating. (9) CAR has a positive and not significant effect on Rating, (10) NPL, CIR, NIM and CAR simultaneously have a positive and significant effect on Rating, (11) ROA has a negative and not significant effect on Rating.
Abel, Sanderson and Pierre Le Roux. (2016). “Determinant of Banking Sector Profitability in Zimbabwe”. International Journal of Economic and Financial Issues Vol. 6 no. 3
Alper, Deger and Adem Anbar. (2011). “Bank Specific and Macro economic Determinants of Bank Profitability: Empirical Evidence from Turkey”. Business and Economics Research Journal, Vol. 2 No. 2, pp. 139-152, 2011
Ariyanti, Indah; Patricia DP and Ari P. (2017). “Influence of CAR, NPF, BOPO and DPK on Profitability with FDR as Intervening Variable”. Economic-Accounting Journal Pandanaran University ISSN: 2502-7697
Bhatia, A: Mahajan P and Chander S. (2012). “Determinant of Profitability of Private Sector Bank in India”. Journal of Commerce and Accounting Research, 1, 14
Boadi, Eric Cofi, Yao Li, and Victor CL. (2016). “Role of Bank Specific, Macroeconomic and Risk Determinant of Bank Profitability: Empirical Evidence From Ghana’s Rural Banking Industry”. International Journal of Economics and Financial Issues ISSN: 2146-4138
Darmawi, Herman. (2011). Banking Management. BumiAksara. Jakarta.
Dendawijaya, Lukman. (2008). Banking Management. Ghalia Indonesia. Jakarta.
Hariyani, Iswi. (2010). Restructuring and Write Off Non Performing Loan. Elex Media Komputindo. Jakarta.
Hasibuan, Malayu. (2008). Banking Basics. BumiAksara. Jakarta.
Idris, AsmaRashidah: Fadli FAHA, Noor AAT, Noor JS, Rajmi M and Kamaruzaman. (2011). Determinant of Islamic Banking Institutions’ Profitability in Malaysia. World Applied Sciences Journal 12 (Special Issue on Bolstering Economic Sustainability): 01-07
IBI. IkatanBankir Indonesia. (2016). Risk Base Bank Rating. GramediaPustakautama. Jakarta.
Ismail. (2013). Banking Management Third Edition. Kencana. Surakarta.
Kasmir. (2009). Bank and Financial Institution. Rajawali Pers. Jakarta.
(2012-2014). Banking Management Revision Edition. Raja GrafindoPersada. Jakarta.
Khan, Faisal: Melati AA, Lim GC, and HashimKhanl. (2011). “Determinants of Bank Profitability in Pakistan: A Case Study of Pakistani Banking Sector”. World Applied Sciences Journal 15 (10): 1484-1493, 2011
Lestari, Tri Puji and AstiwiIndriyani. (2016). “the Influence NPL, ROA, LDR and BOPO on Bank Rating”. Diponegoro Journal of Management Vol. 5 No. 4
Manurung, Mandala and PrataRahardja. (2008). Introduction of Macroeconomic Theory. Fourth Edition. LembagaPenerbitFakultasEkonomiUniversitas Indonesia. Jakarta.
Masood, Omar and Muhammad Ashraf. (2012). “Bank-specific and Macroeconomic profitability Determinants of Islamic Banks: The case of Different Countries”. Qualitative Research in Financial Markets, Vol. 4 No. 2, pp. 255-268 DOI: https://doi.org/10.1108/17554171211252565
Mathuva, David. 2009. “Capital Adequacy, Cost Income Ratio and the Performance of Commercial Banks: The Kenyan Scenario”. The International Journal of Applied Economics and Finance 3(2); 2009 DOI: https://doi.org/10.3923/ijaef.2009.35.47
Maudhita, Alista and HakimanThamrin. (2018). “Factors Affecting Financial Performance on bank BUKU 4 period 2012-2016”. Journal of Business and Management MercuBuana University Vol. 2 No. 2
Olalekan, Asikhia., and SokefunAdeyinka. (2013). “Capital Adequacy and Banks Profitability: an Empirical Evidence from Nigeria”. American International Journal of Contemporary Research Vol. 3 No. 10.
Olaoye, Festus Oladipupo and Odunayo M Olarewaju (2015). “Determinants of Deposit Money Banks Profitability in Nigeria”. Kuwait Chapter of Arabian Journal of Business and Management Review Vol. 4 no. 9: May 2015 DOI: https://doi.org/10.12816/0018987
Ongore, Vincent Okoth and GemechuBerhanuKusa. (2013). “Determinants of Financial Performance of Commercial Banks in Kenya”. International Journal of Economic and FinancialIssues Vol. 3 No. 1:2013
Pandia, Frianto. (2012). Fubd Management and Bank Health. RinekaCipata. Jakarta.
Petria, Nicolae; Bogdan C, and Iulian I. (2015). “Determinant of Banks Profitability:Evidence From EU 27 Banking System”. Procesia Economic and Finance Vol. 20; 2015 DOI: https://doi.org/10.1016/S2212-5671(15)00104-5
Pramana, Agita Putra and IrniYunita. (2015). “Influence of Risk Base bank Rating (RBBR) Ratios on Obligation Rating”. Journal of Management Indonesia Vol. 15 No. 1
Rivai, Veithzal: SofyanBasir, SarwonoSudarto and ArifiandyPermata. (2013). Commercial Bank Management: Banking Mangement From Theory to Practice. Rajawali Pers. Jakarta.
Riyadi, Slamet. (2008). Banking Asset and Liability Management. Economic Faculty of Indonesia University. Jakarta.
Salim, M. Noor; SugengSuroso, Tri Wisyastuti, and Irma Setyawati. (2017). Intellectual Capital and Corporate Governance in Financial Performance Indonesia Islamic Banking. International Journal of Economics and Financial Issues, 7(4), 96-103
Salim, M. Noor: Abdul BasyithDencik, FitriyaFauziYahya, and Mohammad IdrisYoesoef. (2018). Multivariate Statistic: Analysis of ANOVA, MANOVA, ANCOVA, MANCOVA, REPEATED MEASURES with excel and SPSS Application. Raja GrafindoPersada. Depok
Sudirman, I Wayan. (2013). Banking Management. Kencana. Jakarta.
Sufian, F and Chong, R.R. (2008). “Determinants of Banks Profitability in a Developing Economy: Empirical Evidence from the Philippines”. Asian Academy od Management Journal of Accounting and Finance, Vol. 4 No. 2, pp. 91-112
Sufian, F and Muzafar Shah Habibullah. (2009). “Bank specific and macroeconomic determinants of bank profitability: Empirical evidence from thr China banking sector”. Frontier of Economic in China, Vol. 4 No. 2, pp. 274-291 DOI: https://doi.org/10.1007/s11459-009-0016-1
Sugiyono. (2010). Quantitative Qualitative Researches Methods and R&D. Alfabeta. Bandung
How to Cite
License and Copyright Agreement
In submitting the manuscript to the journal, the authors certify that:
- They are authorized by their co-authors to enter into these arrangements.
- The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal.
- That it is not under consideration for publication elsewhere.
- That its release has been approved by all the author(s) and by the responsible authorities – tacitly or explicitly – of the institutes where the work has been carried out.
- They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
- They agree to the following license and copyright agreement.
Authors who publish with International Journal of Engineering Technologies and Management Research agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or edit it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
For More info, please visit CopyRight Section