The Determinant of Banking Profitability of BUKU IV Bank in Indonesia (2019-2020)

Abstract

This research focuses on the study the determinant on banking profitability of seven private banking in Indonesia. The data panel was analyzed using a fixed-effect model. This study results partially that the independent variables of capital adequacy ratio and BOPO significantly affected profitability (return on asset), while the independent variables of non-performing loan and loan to deposit ratio had no significant effect on profitability (return on asset) in 2020. However, generally, these four variables affect profitability (return on asset) during the Covid-19 pandemic. The global and national macroeconomic conditions are one of the reasons that effect the banking sector returns on assets (ROA). The challenging global economic conditions with the ongoing US-China Trade War triggered a major impact on the Chinese economy and the volatility of the Asian Region from commodity prices. After the US General Election in November 2020, many industrial players took a “wait and see” attitude, waiting and seeing the upcoming policies on trade and capital flows in the region. The health crisis due to the Covid-19 pandemic also put pressure on the global and national economy as well as the handling of the pandemic with the global social situation that creates financial market uncertainty in 2020. People's mobility is greatly reduced until it reaches its lowest point in March-May 2020. The existence of these uuncertainfinances has an impact on market conditions and the investment behavior of the public.

Keywords: covid-19; profitability; return on the asset; banking industry

Abstrak

Penelitian ini bertujuan untuk mengetahui faktor-faktor yang berpengaruh terhadap profitabilitas perbankan, khususnya pada 7 Bank yang termasuk dalam kategori Bank BUKU IV di Indonesia. Data didapatkan berdasarkan laporan keuangan perbankan, dianalisa menggunakan alat regresi dengan metode data panel. Pendekatan model estimasi regresi yang digunakan yaitu pendekatan efek tetap. Hasil penelitian menunjukan bahwa secara parsial, variabel independen capital adequacy ratio dan BOPO secara signifikan berpengaruh terhadap profitabilitas (return on asset), sedangkan variabel independen lainnya yaitu non performing loan dan loan to deposit ratio tidak berpengaruh signifikan terhadap profitabilitas (return on asset) pada tahun 2020. Akan tetapi, secara keseluruhan, keempat variabel independen tersebut berpengaruh terhadap profitabilitas (return on asset) pada masa pandemi Covid-19. Kondisi ekonomi makro secara global dan nasional merupakan salah satu alas an pengaruh return on asset sektor perbankan. Kondisi perekonomian global yang penuh tantangan dengan berlanjutnya Perang Dagang AS-China memicu dampak besar bagi perekonomian China dan volatilitas Kawasan Asia dari harga komoditas.  Pasca Pemilihan Umum AS pada November 2020, banyak pelaku industri mengambil sikap “wait and see”, menunggu dan melihat kebijakan perdagangan serta arus modal yang akan datang.  Krisis kesehatan akibat pandemi Covid-19 juga memberikan tekanan pada perekonomian global dan nasional serta penanganan pandemi dengan situasi sosial global yang menciptakan ketidakpastian pasar keuangan pada tahun 2020. Mobilitas masyarakat sangat berkurang hingga mencapai titik terendah pada Maret-Mei 2020. Adanya ketidakpastian keuangan tersebut berdampak pada kondisi pasar dan perilaku investasi masyarakat.

Keywords: Covid-19; profitabilitas; return on asset, industri perbankan