The impact of financial crisis on the performance of commercial banks in a developing economy : empirical evidence from Indonesia.

The paper seeks to examine the determinants of indonesian banks profitability during the period 1990-2005. The empirical findings suggest that income diversification and capitalization are positively related to bank profitability, while size and cost have negative impacts. During the period under st...

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Main Authors: Sufian, Fadzlan, Habibullah, Muzafar Shah
Format: Article
Language:English
Published: 2010
Online Access:http://psasir.upm.edu.my/id/eprint/17186/
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Institution: Universiti Putra Malaysia
Language: English
id my.upm.eprints.17186
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spelling my.upm.eprints.171862013-07-25T00:55:48Z http://psasir.upm.edu.my/id/eprint/17186/ The impact of financial crisis on the performance of commercial banks in a developing economy : empirical evidence from Indonesia. Sufian, Fadzlan Habibullah, Muzafar Shah The paper seeks to examine the determinants of indonesian banks profitability during the period 1990-2005. The empirical findings suggest that income diversification and capitalization are positively related to bank profitability, while size and cost have negative impacts. During the period under study, credit risk and network embeddedness are not economically significantly related to the profitability of indonesian banks. The impact of economic growth is positive during the crisis and post-crisis periods. We find that the crisis period has negative impact on indonesian banks profitability, while indonesian banks have been relatively more profitable during the post-crisis compared to the pre and crisis periods. 2010 Article PeerReviewed Sufian, Fadzlan and Habibullah, Muzafar Shah (2010) The impact of financial crisis on the performance of commercial banks in a developing economy : empirical evidence from Indonesia. International Journal of Economics, 4 (1). pp. 165-179. ISSN 0973-6719 English
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The paper seeks to examine the determinants of indonesian banks profitability during the period 1990-2005. The empirical findings suggest that income diversification and capitalization are positively related to bank profitability, while size and cost have negative impacts. During the period under study, credit risk and network embeddedness are not economically significantly related to the profitability of indonesian banks. The impact of economic growth is positive during the crisis and post-crisis periods. We find that the crisis period has negative impact on indonesian banks profitability, while indonesian banks have been relatively more profitable during the post-crisis compared to the pre and crisis periods.
format Article
author Sufian, Fadzlan
Habibullah, Muzafar Shah
spellingShingle Sufian, Fadzlan
Habibullah, Muzafar Shah
The impact of financial crisis on the performance of commercial banks in a developing economy : empirical evidence from Indonesia.
author_facet Sufian, Fadzlan
Habibullah, Muzafar Shah
author_sort Sufian, Fadzlan
title The impact of financial crisis on the performance of commercial banks in a developing economy : empirical evidence from Indonesia.
title_short The impact of financial crisis on the performance of commercial banks in a developing economy : empirical evidence from Indonesia.
title_full The impact of financial crisis on the performance of commercial banks in a developing economy : empirical evidence from Indonesia.
title_fullStr The impact of financial crisis on the performance of commercial banks in a developing economy : empirical evidence from Indonesia.
title_full_unstemmed The impact of financial crisis on the performance of commercial banks in a developing economy : empirical evidence from Indonesia.
title_sort impact of financial crisis on the performance of commercial banks in a developing economy : empirical evidence from indonesia.
publishDate 2010
url http://psasir.upm.edu.my/id/eprint/17186/
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