Proceedings of the 2016 Global Conference on Business, Management and Entrepreneurship

Performance Evaluation of Indonesian Banks and Foreign Banks Operating in Indonesia Related to Classification of Capital

Authors
Sugiarto Sugiarto
Corresponding Author
Sugiarto Sugiarto
Available Online August 2016.
DOI
https://doi.org/10.2991/gcbme-16.2016.18How to use a DOI?
Keywords
Bank's Performance, Core capital, Non-Performing Loans, Net Interest Margin
Abstract
This study was undertaken to prove the public perception that bigger banks are more difficult to bankrupt than smaller banks through performance evaluation of Indonesian banks and foreign banks operating in Indonesia related to classification of capital. The study was conducted using secondary data obtained from Info bank. Overall there were 120 banks evaluated, either local banks belonging to the various classifications of books as well as foreign banks operating in Indonesia. As the research variables are the bank's core capital, Non-Performing Loan (NPL) and Net Interest Margin (NIM). Grouping of banks has done according to the rules of Indonesia Bank (BI) on commercial banks business activities (books). Tests were performed using descriptive statistics, One Way ANOVA and Post Hoc Test. The results obtained indicate that banks with more capital and also foreign banks are not more able to reduce their credit risk and also not show better ability to produce gains than local banks with smaller capital. The findings of this study indicate the success of the Indonesia Bank (BI) as the Indonesian banking regulatory authority to equate the performance of banks operating in Indonesia.
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Volume Title
Proceedings of the 2016 Global Conference on Business, Management and Entrepreneurship
Series
Advances in Economics, Business and Management Research
Publication Date
August 2016
ISBN
978-94-6252-268-8
ISSN
2352-5428
DOI
https://doi.org/10.2991/gcbme-16.2016.18How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Sugiarto Sugiarto
PY  - 2016/08
DA  - 2016/08
TI  - Performance Evaluation of Indonesian Banks and Foreign Banks Operating in Indonesia Related to Classification of Capital
BT  - Proceedings of the 2016 Global Conference on Business, Management and Entrepreneurship
PB  - Atlantis Press
SP  - 104
EP  - 108
SN  - 2352-5428
UR  - https://doi.org/10.2991/gcbme-16.2016.18
DO  - https://doi.org/10.2991/gcbme-16.2016.18
ID  - Sugiarto2016/08
ER  -