Asset Quality, Non-Interest Income, and Bank Profitability: Evidence from Indonesia

DOI

10.2991/assehr.k.210531.077How to use a DOI?

Keywords

Income Diversification, Bank, Bank Profitability, Non-Interest Income, Asset Quality

Abstract

This paper aims to investigate whether increases in non-interest income activities result in higher profitability of banks operating in Indonesia and how they differ from groups of banks based on ownership status and asset quality. Our findings show that the relationship between income diversification and bank profitability is statistically insignificant, although the relationship between the two measurements is positive. Furthermore, from income diversification, lower asset quality banks enjoy higher benefits than higher asset quality banks. The findings are found to be sensitive to dynamic estimators and possible alternative sample specifications.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Febrio Giring Tolangga
AU  - Maria Ulpah
PY  - 2021
DA  - 2021/05/31
TI  - Asset Quality, Non-Interest Income, and Bank Profitability: Evidence from Indonesia
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 615
EP  - 624
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.077
DO  - 10.2991/assehr.k.210531.077
ID  - Tolangga2021
ER  -