Loan Diversification, Market Concentration, and Stability in the Indonesian Banking Industry
- 10.2991/assehr.k.210531.063How to use a DOI?
- Diversification, Stability, Concentration, Bank
This study aims to investigate the impact of loan diversification, market concentration, and the interaction effect of loan portfolio diversification and market concentration on banks’ stability in Indonesia. The observation includes 62 commercial banks from Indonesia with an annual data period of 2010–2017. By employing a panel regression technique with fixed effect models, the findings suggest that loan portfolio diversification decreased bank stability. However, market concentration does not significantly affect bank stability. The results of this study also indicate that the stability of diversifying banks may differ in concentrated and less concentrated markets.
- © 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 - Nabila Sheila Meutia AU - Dony Abdul Chalid PY - 2021 DA - 2021/05/31 TI - Loan Diversification, Market Concentration, and Stability in the Indonesian Banking Industry BT - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019) PB - Atlantis Press SP - 496 EP - 504 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.210531.063 DO - 10.2991/assehr.k.210531.063 ID - Meutia2021 ER -