The Impact of Income Diversification and Non-Interest Income Diversification on Indonesian Bank Performance, 2012-2017
- 10.2991/assehr.k.210531.068How to use a DOI?
- Income Diversification, Non-Interest Income Diversification, Bank Performance, Indonesia
The influence of diversification decisions is still debated in several studies. Some studies highlight the positive impact of diversification on company performance. On the other hand, diversification has also been considered to have a negative impact on companies. The negative impacts from diversification activities are often referred to as the dark side of diversification. This study examines the impact of income diversification, non-interest income diversification, bank size, loan proportion, and non-performing loans on bank performance. Income diversification and non-interest income diversification were tested at the same time. Forty-one Indonesian banks were examined for the period 2012–2017. The period was considered to be challenging for banks in Indonesia because of a fluctuating economic situation. This study found that income diversification, non-interest income diversification, and non-performing loans negatively influenced bank performance. Bank size had a positive effect on bank performance and loan proportions were not proven to have any effect on bank performance.
- © 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 - Dediek Tri Kurniawan AU - Ely Siswanto PY - 2021 DA - 2021/05/31 TI - The Impact of Income Diversification and Non-Interest Income Diversification on Indonesian Bank Performance, 2012-2017 BT - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019) PB - Atlantis Press SP - 540 EP - 546 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.210531.068 DO - 10.2991/assehr.k.210531.068 ID - Kurniawan2021 ER -