Portion of Foreign Ownership and Efficiency of Banks in Indonesia

sparta, sparta (2017) Portion of Foreign Ownership and Efficiency of Banks in Indonesia. Selected Papers from the Asia-Pacific Confrence on Economic & Finance(APEF 2016) . Springer, Singapore. ISBN 978-981-10-3565-4; 978-981-10-3566-1 eBook

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Abstract

This study aims to 1). Know the description of foreign ownership in private national bank and non-foreign exchange, 2). Determine the impact of foreign ownership on the efficiency of the national private banking and non-foreign exchange and 3). Find out if there are differences in the impact of the percentage of foreign ownership of bank on the efficiency of the national private groups and non-foreign exchange. Samples are bank in the group of Foreign Exchange National Private Bank (BUSND) and the National Private Bank Non-Foreign Exchange (BUSNND). The number of bank which became the object of research are as many as 54 bank from the year 2001-2013, with a total observation is 702. The number of observations included in the data processing is 648. This is due to the use of variable BOPO the previous year, so the data BOPO one year before starting 2002. Research variables used are BOPO, the share of foreign ownership, the size of the bank, and the group dummy variables. The equation used is OLS research using panel data. The results of this study prove 1). Foreign ownership has a positive influence on inefficiencies for particular group of BUSND and BUSNND. 2). The bigger the bank's assets, the bank tends to be more efficient than ever before. 3). There is no difference in the impact of foreign ownership on bank efficiency levels among the BUSND and BUSNN group.. The results of this study have implications for the policy to restrict foreign ownership in national bank. Revision of the Banking Act are being processed in the Commission XI, one of which is to limit foreign ownership in national bank. The results of this study can be considered in the revision of the Banking Law, foreign ownership in particular point because of increased foreign ownership tends to decrease the efficiency of the banking system. Keywords: foreign ownership, the bank's assets, BUSND, BUSNND and the Banking Law

Item Type: Book
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions: KODEPRODI62201#Akuntansi
Depositing User: Dr. Sparta Sparta
Date Deposited: 18 Oct 2020 10:48
Last Modified: 16 Dec 2020 23:54
URI: http://repository.ibs.ac.id/id/eprint/1146

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