LOAN PORTFOLIO COMPOSITION AND PERFORMANCE OF INDONESIAN BANKS: DOES OWNERSHIP MATTER?

Apriani Dorkas Rambu Atahau

Abstract


As a country which is hard-hit by the crisis, Indonesian banking industry underwents banking reform with changes in its bank ownership structures. The changes may have impacted the loan portfolio compositions of banks. However, there is no study that has empirically tested the impact of the ownership structures on loan portfolio composition and performance in Indonesia, although the facts that credit risk is a major bank risk.

The objective of this research is to examine the loan portfolio composition of Indonesian banks in the post crisis period and to determine whether bank ownership plays a role in the composition and performance of the portfolios. This study used secondary data from the Indonesian Banking Directory of the Indonesian Central Bank and all commercial bank annual reports provided by Infobank magazine. The research sample consists of 109 commercial banks in the year 2011. The data is analysed by using multiple regression methods. It is envisaged that the research will give a broad insight on how different bank ownership types select their loan portfolio strategies when composing their loan portfolios.


Keywords


banks, loan portfolio composition, performance, bank ownership types, Indonesia

Full Text: pdf

Refbacks

  • There are currently no refbacks.




rsz_1ifa_call-for-paper-1-724x1024

Journal of Finance and Banking

Diploma Program of Banking and Finance
Faculty of Economics and Business University of Merdeka Malang

Mailing Address:

2nd-floor Banking and  Finance Building, Terusan Raya Dieng Street No.57 Malang, 65146, East Java, Indonesia
Phone/WhatsApp: +628123321664; Fax. +62 341 580511
Email:
jkpunmermlg@yahoo.com


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.