Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)

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The Impact of Income Diversification and Non-Interest Income Diversification on Indonesian Bank Performance, 2012-2017

Authors
Dediek Tri Kurniawan, Ely Siswanto
Corresponding Author
Dediek Tri Kurniawan
Available Online 31 May 2021.
DOI
10.2991/assehr.k.210531.068How to use a DOI?
Keywords
Income Diversification, Non-Interest Income Diversification, Bank Performance, Indonesia
Abstract

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.

Copyright
© 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/).

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Volume Title
Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
31 May 2021
ISBN
10.2991/assehr.k.210531.068
ISSN
2352-5398
DOI
10.2991/assehr.k.210531.068How to use a DOI?
Copyright
© 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

risenwbib
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  -