Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia

The paper seeks to examine the determinants of Indonesian banks profitability during the period 1990–2005. The empirical findings indicate that income diversification and capitalization are positively related to bank profitability, while size and overhead costs exert negative impacts. During the per...

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Main Authors:	Sufian, Fadzlan, Habibullah, Muzafar Shah
Format:	Article
Language:	English
Published:	Institute of Southeast Asian Studies 2010
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/5159/ http://irep.iium.edu.my/5159/ http://irep.iium.edu.my/5159/2/01_Fadzlan_Sufian.pdf

id	iium-5159
recordtype	eprints
spelling	iium-51592011-12-19T04:34:13Z http://irep.iium.edu.my/5159/ Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia Sufian, Fadzlan Habibullah, Muzafar Shah HG1501 Banking The paper seeks to examine the determinants of Indonesian banks profitability during the period 1990–2005. The empirical findings indicate that income diversification and capitalization are positively related to bank profitability, while size and overhead costs exert negative impacts. During the period under study, Indonesian banks seem to have been skimping on their resources, particularly during the pre-crisis and crisis periods. The impact of economic growth and banking sector concentration are positive during the pre-crisis and crisis periods. We find that the Asian financial crisis exerts negative and significant impact on the profitability of Indonesian banks, while Indonesian banks have been relatively more profitable during the pre-crisis compared to the post-crisis and crisis periods. Institute of Southeast Asian Studies 2010-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5159/2/01_Fadzlan_Sufian.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2010) Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia. ASEAN Economic Bulletin, 27 (3). pp. 245-262. ISSN 0217-4472(print), 1793-2831(electronic) http://www.iseas.edu.sg
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Sufian, Fadzlan Habibullah, Muzafar Shah Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia
description	The paper seeks to examine the determinants of Indonesian banks profitability during the period 1990–2005. The empirical findings indicate that income diversification and capitalization are positively related to bank profitability, while size and overhead costs exert negative impacts. During the period under study, Indonesian banks seem to have been skimping on their resources, particularly during the pre-crisis and crisis periods. The impact of economic growth and banking sector concentration are positive during the pre-crisis and crisis periods. We find that the Asian financial crisis exerts negative and significant impact on the profitability of Indonesian banks, while Indonesian banks have been relatively more profitable during the pre-crisis compared to the post-crisis and crisis periods.
format	Article
author	Sufian, Fadzlan Habibullah, Muzafar Shah
author_facet	Sufian, Fadzlan Habibullah, Muzafar Shah
author_sort	Sufian, Fadzlan
title	Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia
title_short	Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia
title_full	Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia
title_fullStr	Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia
title_full_unstemmed	Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia
title_sort	assessing the impact of financial crisis on bank performance: empirical evidence from indonesia
publisher	Institute of Southeast Asian Studies
publishDate	2010
url	http://irep.iium.edu.my/5159/ http://irep.iium.edu.my/5159/ http://irep.iium.edu.my/5159/2/01_Fadzlan_Sufian.pdf
first_indexed	2023-09-18T20:13:38Z
last_indexed	2023-09-18T20:13:38Z
_version_	1777407642168197120

Assessing the impact of financial crisis on bank performance: empirical evidence from Indonesia

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