Elvira, Elvira and Bustaman, Yosman (2015) An Analysis of Loan Portfolio Growth and Foreign Bank Ownership on Banking Profitability and Credit Risk: Evidence from the Indonesian Banking Industry. Bachelor thesis, Swiss German University.

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Abstract

Using a panel data analysis, this research aims to find the significance of relationship of Loan Portfolio Growth on Profitability and Credit Risk and impact of Foreign Bank Ownership on Profitability and Credit Risk. An observation of 58 Indonesian commercial banks are included for the period of 2006-2014. Return on Asset (ROA) and Return on Equity (ROE) are used as profitability determinants, credit risk is proxied by Non-Performing Loan (NPL) and Loan Loss Provision (LLP). After controlling for bank specific factors and macroeconomic factors, the Herfindahl-Hirschmann Index (HHI) is involved to capture the effect of market concentration on the model. Size, capital ratio, and liquidity are determinants of bank specific factors and gross domestic product (GDP) and inflation represent macroeconomic factors. This research found negative and insignificant impact of Loan Portfolio Growth on Profitability but a negative and significant impact on Credit Risk. Furthermore, Foreign Bank Ownership is found to have a significant impact for the Profitability and Credit Risk of the Indonesian banking industry.

Item Type:	Thesis (Bachelor)
Uncontrolled Keywords:	Loan Portfolio Growth; Foreign Ownership; Profitability; Credit Risk; Banking.
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance H Social Sciences > HG Finance > HG1501-3550 Banking
Divisions:	Faculty of Business Administration and Communication > Department of Accounting
Depositing User:	Atroridho Rizky
Date Deposited:	05 Nov 2020 11:44
Last Modified:	05 Nov 2020 11:44
URI:	http://repository.sgu.ac.id/id/eprint/1487

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