Asset Quality, Non-Interest Income, and Bank Profitability: Evidence from Indonesia
- 10.2991/assehr.k.210531.077How to use a DOI?
- Income Diversification, Bank, Bank Profitability, Non-Interest Income, Asset Quality
This paper aims to investigate whether increases in non-interest income activities result in higher profitability of banks operating in Indonesia and how they differ from groups of banks based on ownership status and asset quality. Our findings show that the relationship between income diversification and bank profitability is statistically insignificant, although the relationship between the two measurements is positive. Furthermore, from income diversification, lower asset quality banks enjoy higher benefits than higher asset quality banks. The findings are found to be sensitive to dynamic estimators and possible alternative sample specifications.
- © 2021, 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 - Febrio Giring Tolangga AU - Maria Ulpah PY - 2021 DA - 2021/05/31 TI - Asset Quality, Non-Interest Income, and Bank Profitability: Evidence from Indonesia BT - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019) PB - Atlantis Press SP - 615 EP - 624 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.210531.077 DO - 10.2991/assehr.k.210531.077 ID - Tolangga2021 ER -