Influence of Efficiency and Capital Adequacy on Financial Performance’s Regional Development Banks (BPD) in Indonesia

sparta, sparta (2014) Influence of Efficiency and Capital Adequacy on Financial Performance’s Regional Development Banks (BPD) in Indonesia. In: Annual Shanghai Business, Economics and Finance Conference, 3-4 November 2014, Shanghai University of International Business and Economics, Shanghai, China.

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Abstract

This research study analyzes the efficiency in Indonesian BPD bank and to what extent the efficiency, capital adequacy, bank size and macro economic indicators influence on financial performance in Indonesian BPD bank for the period 2008-2012. This study uses the variables ROA, CAR, LNSIZE, GDP, GCRED and INF. The models are estimated using Ordinary Least Square and panel data obtained from Indonesian BPD bank. There are 26 Indonesian BPD banks contain 130 observations. The average BOPO in Indonesian BPD bank for the period of five years is 72.45%. BPD bank Aceh is the most inefficient bank which has BOPO 92.98% and South Sulawesi BPD is the most efficient bank wich has BOPO 54.03%. The most inefficient BPD for each year 2008, 2009, 2010, 2011 and 2012 respectively are BDKI, BSTR, BACH, BSUA and BSSN. The most efficient BPD bank for 2008, 2009, 2010, 2011, and 2012 respectively are BSST, BSTA, BKTM, BSTA and BSTA. None of Indonesian BPD bank in Java could be awarded the most efficient bank although they have total assets greater than BPD bank in outside Java . BOPO, CAR, and LNSIZE have negatively significant influence on Indonesian BPD bank financial performance. Regional economic indicators, GCREDR has negatively significant influences on financial performance BPD bank but INFR has positively significant influences on financial performance and GPDRBT regional economic indicator does not appear to have significant influence on financial performance in Indonesian BPD bank. Keywords: BOPO and CAR

Item Type: Conference or Workshop Item (Paper)
Additional Information: Proceedings of Annual Shanghai Business, Economics and Finance Conference 3 - 4 November 2014, Shanghai University of International Business and Economics, Shanghai, China ISBN: 978-1-922069-63-4
Subjects: H Social Sciences > HG Finance
H Social Sciences > HJ Public Finance
Divisions: KODEPRODI62201#Akuntansi
Depositing User: Dr. Sparta Sparta
Date Deposited: 18 Oct 2020 10:44
Last Modified: 16 Dec 2020 23:38
URI: http://repository.ibs.ac.id/id/eprint/941

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