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Journal : Journal of Economics, Business,

MACROECONOMIC AND BANK-SPECIFIC DETERMINANTS OF LOAN LOSS PROVISIONING IN INDONESIA Suhartono Suhartono
Journal of Economics, Business, & Accountancy Ventura Vol 15, No 3 (2012): December 2012
Publisher : STIE Perbanas Surabaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v15i3.107

Abstract

This paper used Generalized-Linear Model (GLM) with the exposure time to examine the determinants ofcredit loss provisions in Indonesia's banking sector. The research was motivated by the hypothesis thatboth macro economic variables and bank - specific have an effect on the quality of loans and loan lossprovisions to cover risks. The results showed that loan losses could be explained primarily by a particularbank and macro economic variables. On asset size, the study found a positive relationship between the sizeof assets and loan loss provisions indicating that there is no benefit for the large banks of their managerialand technological advantages. Well-capitalized bank with a negative impact on loan loss provisions, thebank also showed that the capitalized ones take less credit risk. It appears clear that inefficient banks torisk further demonstrate the validity of the hypothesis of poor management. Using the profitability/ReturnOn Average Assets (ROAA), it was found that there is a negative relationship implying that profitable banksave lower credit risk and also support the hypothesis that good management to take the risk is lower. Onthe impact of the price index, it was found negative showing higher inflation reduces loan loss provisions.In terms of economic growth/Growth Development (GD), the results provide further evidence that economicgrowth reduces credit risk and that this provides further support of procyclicality in credit markets.
CREDIT RISK-TAKING AND CAPITAL POSITION: EVIDENCE FROM TWO-STAGE REGRESSION Suhartono Suhartono
Journal of Economics, Business, & Accountancy Ventura Vol 15, No 1 (2012): April 2012
Publisher : STIE Perbanas Surabaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v15i1.64

Abstract

Research on credit risk and its relationship with capital in a company is important. This isbecause the information about such thing can be considered very beneficial. This study examinesthe relationship between risk and capital in Indonesia Banking Market. It tested whetherbank credit risk taking is correlated with its capital position. In this study, risk and capitalwere based on accounting ratios. Data for the study were taken from Banks cope databasefor the period 2003 to 2008. A two-stage-Regression analysis was used to estimate the relationship.On the risk taking model, it is correlated with ex post risk, portion of loan loss provisionto capital (RISKCAP), and ratio of net loans to asset (NLTA), and negatively to sizeand inefficiency. On the capital equation, there is negative relationship with risk taking butnot with inefficiency. Asset size has negative impact on capital positions and profitable bankshold more capital. It is clear that risk taking is not influenced by capital and capital is negativelydetermined by risk taking. In short, the relationship between risk taking and capital isnot two-way but one way.
Co-Authors Achmad Djunaedy Achmad Mauludiyanto afrida conniestia ikhsani Agnesia Fransisca Wahyuningsih Agnesia Putri Rini Agus Joko Purwadi Agus Tohawi agus Aji Winara Akhmad Fathurrohman Akhmad Qomaru Zaman Alfa Reza Dwi Yulistianingsih Ali Bekti Widodo Alif Rahman Dhani Amalia Mustika Hayati Amaliyah Mutiatus Sholichah Amanda Putri Nurjanah Anisa Nur Azizah Anita Nurul Apriliana Anna Nur Nahari Apid Hapid Maksum Apoina Kartini Aprilia Maharani Tunggal Putri Ari Suwondo Arifian Rahman Arina Ati Khusana Arni Ambarwati Arono Arono Arum Widasari Ary Widiyanto Ashari Ashari Asih Fitria Janti Aslim Rasyad Asrita Fahruni Misbakh Audi Gita Nanda Ay Ahmad Ayu Rahmadani Ayu Setiya Munika Bambang Yulianto Belin Ayu Tinasih Beta Noranita Beta Noranita Budiyono Budiyono Budy Wiryawan BUSTANUL ARIFIN Cahya Hidayanti Catur Anggoro Chalisa Nurul Ilmi Cicik Pramesti Cintia Irawati Desti Pratiwi Cita Rosari Putra Cristin Oktaviani Goslesia Yunita Alfabet Cut Nanda Defira Cut Yulvizar Cyntia Melawati Damairul Fatmah Damayanti, Elok Daulay, Henri Yanto Dedi Natawijaya Dedy Dwi Prastyo Della Fadhilatunisa Dennis Farina Nury Deny Kurniadi Saputro Destario Metusala Dewi Andriyani Dharminto Dharminto Diah Monitasari Diah Monitasari Monitasari Diah Nur Cahya Wati DIAN RAHMAWATI Dias Aji Bantarwati Dimas Yoga Akhirul Dita Indah Permata Diyani Ayu Karimizzah Dwi Pungky Ari Sandhi Dwi Purwanti dwi purwanto Elsa Liana Erika Safira Almas Khaerani Erlina Meliyanti Ermayana Megawati Esti Nur Cahyati Fahrul Hadi Faiza Arifin Farid Fajrin Feerzet Achmad Ferditia Karna Juwana Fidiyatun Fidiyatun Fina Hiasa Finna Amelia Firdaus Khaerunisa Floris Boogaard Gamantyo Hendrantoro Githa Ulandari Gumono Gumono Hakam Ali Niazi Hanifah Imannur Fadila Haryanto Haryanto Hesti Lestari I Made Gde Meranggi Dana Ibrahim, Mochammad Malik Iin Pratiwi Ika Esti Anggraeni Ika Nur Jannah Ikhwan Hanapi Intan Lutfiana Irfan Yoni Tama Irma Dewiyanti Irmawati Wahyuningsi Isnaeni Subekti Isnaini Abdullah Isnanto Sunu Utomo Jamaluddin Majid Jamilah Jamilah Jasmin Jasmin Joharman Joharman JUMARDI Juwita Ayang Nuretza K. Heri Nugroho HS, K. Heri Karim, Abdul Kartika Chrysti Suryandari Kintan Arifa Shafirin Kusmiati Kusmiati Kusmiati Kusmiati Laelatus Soimah Lala Ayu Fauzia Lenni Fitri Lia Mei Saputri Lily Gunawan Lin Wahyuni Lince Bulutoding Lovia Sisilia Mellyani Lutviana Riski M. Arifin Maria Paristiowati Martini Martini Masfa'if Riandi Mateus Sakundarno Mateus Sakundarno Adi, Mateus Sakundarno Mauridhi Hery P Meidi Syaflan, Meidi Mela Fitania Melani Putri Memen Suwandi Mintowati Mintowati Misbahul Munir Moh Salimi Muchlis AU Sofro Muchtar Mawardi Mufidatul Khasanah Muh Wahyudi Muh. Fahrul Rasyid Muhamad Chamdani Muhammad Abdul Muhdi Bindar Muhammad Faza Alfalah Muhammad Imam Ma'arif Muhammad Nasir Muhammad Rifky Aulia Muman Nuryana Murcahyani Murcahyani Mursid Rahardjo Mursid Raharjo Musdalifah Latif Mutiara Sari Dewi Nafri Yanti Namla Elfa Syariati Nanda Nur Rahmawati Naomi Christina Hutabarat Nashri Maulidah Neni Dewi Anggraeni Ngatman, Ngatman Ni Nengah Arini Murni Niki Astorina Yunita Dewanti Nikie Astorina Yunita Dewanti Nirum Rahmawati Novi Hidayati Novi Nurhayati Novri Suhermi Nur Endah Wahyuningsih Nur Hidayati Khabibah Nur Rahmah Sari Nur Windyah Hasan Nurarini Arsyad Nurdin Bahtiar Nurhabiba Nurhabiba Nurhayani Nurjazuli Nurjazuli Nurul Hidayah Nur’Aini Nur’Aini Ocha Wahyu Perdana Onny Setiani P.W. Novianti Panci Sejati Prasetyo Kurniawan Priyo Sidik Sasongko Pulung Ardiyanto Puspita Hardianti Anwar Putri Indah Yanti Putri, Asri Neli R. Djoko Nugroho Raditya Rahmat Wijaya Rahmah Karuniawati Rani Novianis Rizky Saputri Raodahtul Jannah Rasipin Rasipin Ratih Laksmiwati Nugroho Ratna Hidayah Resky Resky Rezky Nur Aisyah Rianasari Rianasari Ridwan Pratama Yudha Rien Anisa Nurahma Riki Suliana,R.S Rio Kurniawan Risa Aprilia Riska Ismail Rismawati Rismawati Riyadhotul Mukaromah Riyandika Andhi Saputra Roby Aditiya Rokhmaniyah Rokhmaniyah, Rokhmaniyah Rostanti Widhihardani Rudi Pangarsaning Utami RUHUL KHALILA Rukmanah Rukmanah Rusyda Nur Rahmawati Saiful Muchlis Saiful Muchlis Sarif Ahmad Sarwit Sarwono Sela Putri Herdina Siti Erniyati Berkah Pamuji Slamet Imam Wahyudi Soeharyo Hadisaputro Sri Arttini Dwi Prasetyawati SRI RAHAYU Sri Wahyuni Sri Wahyuningsih Roesipin Sri Winarni Subiharto Subiharto Suciati Sah Sugiharti Sugiharti Suharto Suharto Suharyo Hadisaputro Sulistyani Sulistyani Sumarlin Sumarlin sunardi sunardi Supangat Supangat Supriyana Supriyana Suryanti Suryanti Susetyo Susetyo Suyono Suyono Syaiful Hadi Syamsul Arifin Syifa Lailatul Mutmainnah Tatag Kurnia Putra Teuku Mohamad Iqbalsyah Titi Suherni Tjahjono, Achmad Tri Saptuti Susiani Tria Mugi Safitri Trimanto Trimanto Tuti Sandra Umi Hanifah Umi Roudoh Undang Undang Wafiq Hasan Al Banna Wahyono Wahyono Wahyu Khasanah Wahyudi Wahyudi Wahyuni Uni Arifin Wanda Eka Pratiwi Widyaningrum Sekar Rini Windy Wijaya Kesuma Wiwin Setiyaningsih Yeni Jayanti Yoga Yuniadi Yoharwan Dwi Sudarto Yulia Aryanti Yuniar Widya Larasati Yusdin Yusdin Yusuf Dwi Santoso