A CASE STUDY ON DETERMINANTS OF NON-INTEREST INCOME OF BANK CATEGORY BUKU 4 IN INDONESIA

• Main Author: Anastasia Panjaitan, Regina
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53683
• Institution: Institut Teknologi Bandung

Intense competition, declining NIM, regulations, pandemic covid-19 and demand for diverse financial products may encourage bank to do income diversification to remain profitable, but income diversification of banks in Indonesia which is seen from the percentage of non-interest income to total revenue is still very small compared to other countries, be it countries in Asia that have similar characteristics to Indonesia such as Malaysia, India or countries in Europe or America. This research is eager to come up with the determinant of non-interest income of Banks in Category BUKU 4 since year 2008 namely BCA Bank, BNI Bank, BRI Bank, and Mandiri Bank. This research uses time series analysis techniques such as autoregressive distributed lag (ARDL) model and error correction model (ECM) analysis to find the significant variable in the short run and in the long run. This research finds that each bank can have different significant determinant of non-interest income in the short run and in the long run. There is no significant determinant in the short run for BCA Bank and Mandiri Bank, but in long run Bank Size, CAR and NIM is the significant determinant for BCA Bank while CAR, NIM and Stock market index are the significant determinant for Mandiri Bank. For BRI Bank, in the short run the significant determinant are total loan, CAR, and Inflation, while in the long run are CAR, NIM, Inflation and GDP growth.For BNI Bank, CAR dan Stock market index can significantly influence non-interest income both in the short and long run while Bank size, CAR, NIM and Inflation will only significantly influence non-interest income in the long run.