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Journal : Binus Business Review

Determination of Return on Assets of the Foreign Exchange Banks in Indonesia Syamni, Ghazali; Rasyimah, Rasyimah; Ratnasari, Desy; Abd. Majid, M. Shabri
Binus Business Review Vol 9, No 3 (2018): Binus Business Review
Publisher : Bina Nusantara University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21512/bbr.v9i3.4872

Abstract

The purpose of this research was to examine the determinants of Return on Assets (ROA) on the foreign exchange banks in Indonesia. The data used were the financial ratios of 27 foreign exchange banks in Indonesia in 2012-2016. The data were gathered from the published financial statements of the Indonesian foreign exchange banks. This research employed a Common Effect Model (CEM) as the most suitable panel regression model to analyze the data using the E-views statistical software. The findings indicate that from 2012 to 2016, the profitability of the exchange banks is largely determined by the Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Operating Efficiency Ratio (OER), and total debt. The findings also imply that apart from maximizing profit, it is important for the banks to abide by the regulations issued by the central bank or the Financial Services Authority in performing the banking operations. Negligence to observe the level of prudential and risk management will not only lead to profit loss, but it will also cause the failure of the banks.
Co-Authors - Afrizal A Sakir, A Sakir A. Sakir, A. Abd Karim, Mohd Rahimie bin Agustina, Maulidar Amir, Fakhrurrazi Amri Amri Andri Soemitra Anggara, Windu Azhar, Thifal Bakri Abdul Karim Batubara, Zulfa Khairina Benazir ., Benazir Bismi Khalidin Chudriana Putri, Rafika Cut Windaswari, Cut Darwanis Darwanis Desy Ratnasari Dewi, Annisa Keumala Dinda, Lidyana Dwita Sakuntala Eka Octavian Pranata Erwin SP, M. Fadhil, Rahmat Faisal Faisal Fitrah Khairi Fredinan Yulianda Fuadi Fuadi Garini, Fitri Ardiya Gea, Dalmaisyah Ghazali Syamni Halim, Hendra Hartomi Maulana Idris, Sofyan Indra Yadi Putra Ismail Ismail Ismail Isnaini Harahap Kesuma, T. Meldi Khairullah, Aulia Kresna Riady, Dwi Kusmilawaty, Kusmilawaty Lada, Suddin Lubis, Fahdi Saidi Maira, Hayatun Marliyah, Marliyah Mazwan, Rasmuna Mohd. Azmi Omar Muazzinah Muazzinah Muhammad Arfan Muhammad Haris Riyaldi, Muhammad Haris Muhammad Umar Maya, Putra Muharman Lubis Mulyadi Adam, Mulyadi Mulyadi, Aka Murkhana, Murkhana Mutia, Ratna Nasir, M. Fadhil Naziruddin Abdullah Ni Made Purnami Nizam, Ahmad Nurlina, Eka Okri Handoko, Dodi Putri Bintusy Syathi, Putri Bintusy Raja Masbar Rasyimah Rasyimah Ridmailis, Ridmailis Ridwan Nurdin Riha Dedi Priantana Rita Handayani, Rita Riyaldi, M. Haris Ronald Rulindo Rosylin Mohd. Yusof Said Musnadi Sakir, A Salina Hj. Kassim Samsul Ariffin Abdul Karim Sari, Meutia Dwi Novita Sartiyah Sartiyah, Sartiyah Sasra, Said Fachrizal Sentosa, Dewi Suryani Shawab, Nabil Silvia, Vivi Siregar, Hilyati Inayah Siregar, M. Ridha Sitepu, Novi Indriyani Suriani Suriani Syahrizal, Teuku Muhammad Taufiq Carnegie Dawood Thahira, Zia ulina, sri Umuri, Khairil Venny Fraya Hartin Nst Wardhani, Izza Al Ula Zakiyah Kusuma Yani, Rina Novi Yusrizal Yusrizal Zaida Rizqi Zainul, Zaida Rizqi Zulfa Zulfa Zulhanizar, Said Zulkifli Zulkifli