Analysis of Macroeconomic Influence Return on Assets Banking Study on Conventional Commercial Banks in Indonesia for the Year 2018–2020

##plugins.themes.bootstrap3.article.main##

This study aims to analyze the effect of macroeconomic variables on the return on banking assets. The data processing method used by the researcher is using the Vector Error Correction Model (VECM) as a data analysis tool and this study confirms that the extent to which it examines the positive and significant influence between macroeconomic variables on the return on banking assets. The data obtained is secondary data based on financial statements within a period of 3 years using monthly time series data. The results of this study indicate that there is a positive and significant effect on the exchange rate and CPI variables while it is negative and significant on the inflation, interest rate and IPI variables resulting from the long-term VECM estimation. While the results show that there is a positive and significant effect on the interest rate and CPI variables and a significant negative on the inflation variable, positive and insignificant on the exchange rate variable, negative and insignificant on the IPI variable on the ROA of the short-term VECM estimation results. The results of the measurement of the composition or contribution of the influence of the independent variable on the dependent variable show the interest rate variable with a value of 4.11% in the 10th period obtained through the results of the decomposition variance (VD) test on the return on assets (ROA) of banking studies at Conventional Commercial Banks in Indonesia.

  1. Aviliani, Siregar H., Maulana T.N.A., Hasanah H. "The Impact of Macroeconomic Condition on The Banks Performance in Indonesia," Bul Ekon Monet Dan Perbank, vol. 17, pp. 379–402, 2015. https://doi.org/10.21098/bemp.v17i4.503.  |   Google Scholar
  2. [2] Abusomwan Success, "Macroeconomic Performance and Performance Nexus Banking Industry: An Perfectual Evidence From Nigeria," Glob J Manag Bus Res E Mark, vol. 18, pp. 33–41, 2018.  |   Google Scholar
  3. S., Mehar A. Riaz, "Impact of Bank Specific and Macroeconomic Variables on the Performance of Commercial Banks of Nepal," Rom Econ J, vol. 16:, pp. 1–110, 2013.  |   Google Scholar
  4. U. Kingdom, C. N. Simiyu, L. Ngile, "Effect of Macroeconomic Variables on Profitability of Commercial Banks Listed in the Nairobi Securities Exchange," Int J Econ Commer Manag,vol. III, pp. 1–16, 2015.  |   Google Scholar
  5. J. Peyavali, S. Sheefeni, "The Macroeconomic Determinants of Profitability among Commercial Banks in Namibia," J Emerg Issues Econ Financ Bank,vol. 4, pp. 1414–31, 2015.  |   Google Scholar
  6. S. Widyaningrum, "Analysis the Effect of Macroeconomic Indicators and Specific-Firm Characteristic as Determinant Profitability of Islamic Banks in Asia," Glob Rev Islam Econ Bus, vol. 2, pp. 85–97, 2014.  |   Google Scholar
  7. Y. C. Pratama, "Macroeconomic Variable and It’s Influence On Performance of Indonesian Islamic Banking," Al-Iqtishad J Ilmu Ekon Syariah, vol. 7, pp. 59–72, 2015.  |   Google Scholar
  8. M. A. Emase, Effect of Macroeconomic Factors on The Profitability of Commercial Banks Listed at The Nairobi Securities Exchange in Kenya. KCA University, 2017.  |   Google Scholar
  9. L. Isaac, "Assessing the Impact of Exchange Rate Risk on Banks Performance in Nigeria," J Econ Sustain Dev, vol. 6, pp.1–13, 2015.  |   Google Scholar
  10. A. Combey, A. Togbenou, "The Bank Sector Performance and Macroeconomics Environment: Empirical Evidence in Togo," Int J Econ Financ, vol. 9, pp. 180–8, 2017. https://doi.org/10.5539/ijef.v9n2p180.  |   Google Scholar
  11. E. O. Kiganda, "Effect of Macroeconomic Factors on Commercial Banks Profitability in Kenya: Case of Equity Bank Limited.," J Econ Sustain Dev, vol. 5, pp. 46–56, 2014.  |   Google Scholar
  12. I. O. Osamwonyi, C. I. Michael, "The Impact of Macroeconomic Variables on the Profitability of Listed Commercial Banks In Nigeria," Eur J Account Audit Financ Res, vol. 2, pp. 85–95, 2014.  |   Google Scholar
  13. B. P. Neupane, "Profitability Determinants of Nepalese Commercial Banks," Press Procedia, vol. 1, pp. 40–5, 2020. https://doi.org/10.17261/pressacademia.2020.1345.  |   Google Scholar
  14. A. Akbar, H. Thamrin, "Analysis of Effect of CAPR, DAR, ROA and Size on Tax Avoidance," Dinasti Int J Manag Sci, vol. 1, pp. 706–18, 2020. https://doi.org/10.31933/dijms.v1i5.285.  |   Google Scholar
  15. S. Gerlach, W. Peng, C. Shu, "Macroeconomic Conditions and Banking Performance in Hong Kong SAR: A Panel Data Study," BIS Pap, vol. 22, pp. 481–97, 2003.  |   Google Scholar
  16. A. Al-Harbi, "The Determinants of Conventional Banks Profitability in Developing and Underdeveloped OIC Countries," J Econ Financ Adm Sci, vol. 24, pp. 4–28, 2019. https://doi.org/10.1108/JEFAS-05-2018-0043.  |   Google Scholar
  17. M. Ekananda, "Analysis of the Macroeconomic Impact towards the NPL National Banking in Indonesia: The Study," Eur Res Stud J, vol. 20, pp. 396–416, 2017. https://doi.org/10.35808/ersj/717.  |   Google Scholar
  18. D. Clichici, T. Colenicova, "The Impact of Macroeconomic Factors on Non-Performing Loans in The Republic of Moldova," J Financ Monet Econ, vol. 1, pp. 73–8, 2014.  |   Google Scholar
  19. A. Hakim, Statistika Deskriptif untuk Ekonomi dan Bisnis. Yogyakarta: Ekonisia; 2006.  |   Google Scholar
  20. Boediono. Seri Sinopsis Pengantar Ilmu Ekonomi No.1 2014:222.  |   Google Scholar
  21. N. Huda, H. R. Idris, M. E. Wiliasih, Ekonomi Makro Islam: Pendekatan Teoritis, 2018.  |   Google Scholar

Downloads

Download data is not yet available.

How to Cite

Prasetya, T., & Thamrin, H. (2021). Analysis of Macroeconomic Influence Return on Assets Banking Study on Conventional Commercial Banks in Indonesia for the Year 2018–2020. European Journal of Business and Management Research, 6(5), 268–275. https://doi.org/10.24018/ejbmr.2021.6.5.1118

Search Panel

 Tegar Prasetya
 Google Scholar |   EJBMR Journal

 Hakiman Thamrin
 Google Scholar |   EJBMR Journal