Febriyanti, Febriyanti and Bustaman, Yosman (2014) The Effect of Non-Traditional Product on Bank’s Risk the Effect of Non-Traditional Product on Bank’s Risk and Profitability: A Case Study of Indonesian Commercial Banks for the Year 2007 – 2013. Bachelor thesis, Swiss German University.

Preview	Text Febriyanti 13110089 TOC.pdf Download (1MB) | Preview
	Text Febriyanti 13110089 1.pdf Restricted to Registered users only Download (906kB)
	Text Febriyanti 13110089 2.pdf Restricted to Registered users only Download (2MB)
	Text Febriyanti 13110089 3.pdf Restricted to Registered users only Download (2MB)
	Text Febriyanti 13110089 4.pdf Restricted to Registered users only Download (1MB)
	Text Febriyanti 13110089 5.pdf Restricted to Registered users only Download (314kB)
Preview	Text Febriyanti 13110089 Ref.pdf Download (377kB) | Preview

Abstract

The deregulation policies have made the borders between bank and non-bank financial institutions and financial products in Indonesian banking industry start to break down. These policies have increased the competitive pressure and led to the deep changes in banking strategies. Banks start to shift their business into less traditional financial activities and increase their involvement in non-traditional activities through product diversification that generates non-interest income. However, the effect of this shift is still questionable, whether the shift is significantly impact or positively related to the performance of the bank. Therefore, this study aims to analyze the effect of non-traditional product on bank’s risk and profitability. A balanced panel data of the 29 public listed banks in Indonesia during the period of 2007 – 2013 is employed in this study. This study found that diversification into non-interest income is positively related but not significantly impact the risk-adjusted returns and insolvency risk. However, diversification within non-interest income is negatively related to insolvency risk and risk-adjusted returns. On the other hand, diversification into and within non-interest income is positively related to the bank’s profitability.

Item Type:	Thesis (Bachelor)
Uncontrolled Keywords:	Non-traditional product, Non-Interest Income, Diversification, Bank Performance.and Profitability: A Case Study of Indonesian Commercial Banks for The Year 2007 – 2013
Subjects:	H Social Sciences > HF Commerce > HF5001 Business H Social Sciences > HG Finance > HG1501-3550 Banking
Divisions:	Faculty of Business Administration and Communication > Department of Business Administration
Depositing User:	Faisal Ifzaldi
Date Deposited:	25 Jul 2021 15:55
Last Modified:	25 Jul 2021 15:55
URI:	http://repository.sgu.ac.id/id/eprint/2113

Actions (login required)

View Item