Profit Efficiency and Factors Affecting Indonesia Banking

DOI

10.2991/assehr.k.201017.084How to use a DOI?

Keywords

efficiency profit, bank size, capital, liquidity, credit risk

Abstract

Amid uncertain global economic conditions, Indonesian banks are showing a good Increase in performance based on increased profitability up to the end of 2019. This research measures the efficiency of profit using the Stochastic Frontier Analysis (SFA) by using the translog Alternative profit Efficiency model. The model’s equation uses the Bank Activity Approach. The measurement results based on average 8 commercial banks are not efficient. Bank size (total assets), bank capital (CAR), bank liquidity (LDR), and bank credit risk (NPL) significantly affect the level of profit efficiency.

Copyright

© 2020, 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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TY  - CONF
AU  - Juliana Kadang
AU  - Surayya
PY  - 2020
DA  - 2020/10/20
TI  - Profit Efficiency and Factors Affecting Indonesia Banking
BT  - Proceedings of the International Conference on Community Development (ICCD 2020)
PB  - Atlantis Press
SP  - 377
EP  - 381
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.201017.084
DO  - 10.2991/assehr.k.201017.084
ID  - Kadang2020
ER  -