Determinants of Bank Performance in Indonesia: Evidence Rural Banks in Pekanbaru City

Hamdi Agustin, Syahdanur, Azwirman

2018

Abstract

The purpose of study to find out how big the financial ratios related to Non Performing Loan (NPL), Operating Expense to Operating Income (OEOI), Loan to Deposit Ratio (LDR), and Capital Adequacy Ratio (CAR) in terms of affecting profitability that occurred in Rural Banks in Pekanbaru City. The population in this study using Rural Banks in Pekanbaru City since 2012 until 2015. The number of Rural Banks in Pekanbaru City as many as 19 RB. Of the total population is taken a sample by using purposive sampling method based on certain criteria. From the sampling criteria can be obtained the number of Rural Banks that meet the criteria of 13 RB. The result of study that operational risks proxied through BOPO variables have a negative and significant impact on Return On Assets (ROA), is due to high operational costs of BR is still not working efficiently, thus lowering ROA. liquidity risk proxied through LDR variable has a positive and significant impact on profitability BR. This indicates that any increase in LDR will be followed by increased profitability, where as the amount of credit disbursed increases, the income from such credit will increase so that the bank's ability to earn profit is also increasing.

Paper Citation

in Harvard Style

Agustin H., Syahdanur. and Azwirman. (2018). Determinants of Bank Performance in Indonesia: Evidence Rural Banks in Pekanbaru City. In Proceedings of the 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and Technology - Volume 1: ICEST, ISBN 978-989-758-496-1, pages 558-563. DOI: 10.5220/0010046405580563

in Bibtex Style

@conference{icest18,
author={Hamdi Agustin and Syahdanur and Azwirman},
title={Determinants of Bank Performance in Indonesia: Evidence Rural Banks in Pekanbaru City},
booktitle={Proceedings of the 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and Technology - Volume 1: ICEST,},
year={2018},
pages={558-563},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010046405580563},
isbn={978-989-758-496-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 3rd International Conference of Computer, Environment, Agriculture, Social Science, Health Science, Engineering and Technology - Volume 1: ICEST,
TI - Determinants of Bank Performance in Indonesia: Evidence Rural Banks in Pekanbaru City
SN - 978-989-758-496-1
AU - Agustin H.
AU - Syahdanur.
AU - Azwirman.
PY - 2018
SP - 558
EP - 563
DO - 10.5220/0010046405580563