AFEBI Economic and Finance Review
Vol 3, No 1 (2018)

THE INFLUENCE OF THE 1998 ASIAN BANKING CRISIS AND THE 2008 GLOBAL FINANCIAL CRISIS TO GROWTH OF THE THIRD PARTY FUNDS OF BANKING SECTOR IN INDONESIA

Rani Nurfaidah (Universitas Padjadjaran)
Fitri Hastuti (Universitas Padjadjaran)



Article Info

Publish Date
12 Sep 2018

Abstract

      The purpose of this research is to investigate the influence of macroeconomic fundamentals such as real GDP growth, deposit rate, and return of composite stock price index, and the influence of bank performance such as the growth of secondary reserve and Non Performing Loans to Third Party Funds. The growth of the banking sector in Indonesia in the 1998 Asian Banking Crisis and the 2008 Global Financial Crisis and also to analyze the different influence of independent variables to Third Party Funds growth in both crises. The data used are secondary data with the research object of 101 banks which were established in both crises consistently.      The method which is used in this study is the pooled EGLS (Cross-Section Weight) and fixed effect method. The results show that macroeconomic fundamentals such as real GDP growth, deposit rate, and return of IHSG have significant effect to growth of Third Party Funds, and bank performance such as the growth of secondary reserve has a significant effect while NPL has no significant effect to growth of Third Party Funds in both crises. Besides that, there is a different effect of each independent variable in both crisis periods where all the independent variables in the period of the 1998 Asian Banking Crisis is  not according to the theory, while all of the independent variables in the period of the 2008 Global Financial Crisis is according to the theory.JEL Classification: E50, G01, G21Keywords: Banking Performance, Crisis, Cross-Section Weight,Macroeconomic Fundamentals Third Party Funds Growth

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Journal Info

Abbrev

aefr

Publisher

Subject

Economics, Econometrics & Finance

Description

AFEBI Economic and Finance Review (AEFR) is an academic journal which is published twice a year (June and December) by The Association of The Faculty of Economics and Business Indonesia. AEFR is aimed as an outlet for theoretical and empirical research in the field of economics and to disseminate ...