Bank Performance in Profitability Dimensions: What External Factors and Why Does It Affect?
- DOI
- 10.2991/aebmr.k.210311.050How to use a DOI?
- Keywords
- Bank performance, profitability, RoA (Return on Assets), RoE (Return on Equity), inflation, GDP, interest rates
- Abstract
Performance in a company is an indicator of a company is working well or not, as well as banking. Bank performance is influenced by internal and external factors. Internal factors is a condition under the control of bank management, meanwhile external factors are outside the control of bank management. The dimensions of bank performance in this research focus on profitability and its influence from external factors. The profitability we use is RoA (Return on Assets) and RoE (Return on Equity). The purpose of this research is to make a basis for thinking and to find out how influential external factors in the macroeconomic realm are on bank performance in order to make effective and efficient solutions. The research method used is a literature study using secondary data from various journals and related articles. The results of the study explain that there are 3 (three) external factors that are often the topic of discussion, namely inflation, economic growth (GDP), and interest rates. Inflation does not really have an effect on RoE, but it does have an effect on RoA. On economic growth (GDP), RoE has a positive effect on GDP, as well as RoA which has a positive relationship. The interest rate also has a positive effect on RoE. Likewise with RoA which has a positive effect on interest rates. It is hoped that this research can become a reference in seeing what external factors in the macroeconomic can affect bank performance in terms of profitability.
- 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
TY - CONF AU - Ariyani Indriastuti AU - Harjum Muharam PY - 2021 DA - 2021/03/13 TI - Bank Performance in Profitability Dimensions: What External Factors and Why Does It Affect? BT - Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020) PB - Atlantis Press SP - 256 EP - 259 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.210311.050 DO - 10.2991/aebmr.k.210311.050 ID - Indriastuti2021 ER -