Financial Stability of Indonesian Small and Medium Financing Bank

Saiful Saiful; Isma Coryanata; Deasy Emalia; Sriwidharmanely Sriwidharmanely; Fenny Marietza

doi:10.2991/978-94-6463-666-6_35

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Financial Stability of Indonesian Small and Medium Financing Bank

Authors

Saiful Saiful¹^{, *}, Isma Coryanata¹, Deasy Emalia¹, Sriwidharmanely Sriwidharmanely¹, Fenny Marietza¹

¹Faculty of Business and Economics, Bengkulu University, Bengkulu City, Indonesia

^*Corresponding author. Email: saiful@unib.ac.id

Corresponding Author

Saiful Saiful

Available Online 17 March 2025.

DOI: 10.2991/978-94-6463-666-6_35 How to use a DOI?
Keywords: financial stability; small & medium Bank; operation efficiency
Abstract: This research aims to investigate the determinant factors of the financial stability of small and medium financing banks (SMFB) in Indonesia. The sample of this study was 100 SMFBs in Indonesia from all provinces selected using a multistage random sampling approach. The findings of the research suggested that on average the financial stability of SMFBs is relatively good with quite high variation between banks with high and low financial stability. This indicates the possibility that many SMFBs in Indonesia will experience financial difficulties or even go bankrupt. In the context of factors that influence the financial stability of SMFBs in Indonesia, this study found that operating efficiency, capital adequacy ratio, and liquidity have a positive effect on the financial stability of SMFBs. Additionally, this study discovered that non-performing loans negatively impact the financial stability of SMFBs. The findings imply that financial stability of Indonesian SMFB can be maintained based on banks’ ability to increase operational efficiency, capital adequacy ratio, liquidity and to reduce its NPL.
Copyright: © 2025 The Author(s)
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title: Proceedings of the 12th International Conference on Business, Accounting, Finance and Economics (BAFE 2024)
Series: Advances in Economics, Business and Management Research
Publication Date: 17 March 2025
ISBN: 978-94-6463-666-6
ISSN: 2352-5428
DOI: 10.2991/978-94-6463-666-6_35 How to use a DOI?
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

ris enw bib

TY  - CONF
AU  - Saiful Saiful
AU  - Isma Coryanata
AU  - Deasy Emalia
AU  - Sriwidharmanely Sriwidharmanely
AU  - Fenny Marietza
PY  - 2025
DA  - 2025/03/17
TI  - Financial Stability of Indonesian Small and Medium Financing Bank
BT  - Proceedings of the 12th International Conference on Business, Accounting, Finance and Economics (BAFE 2024)
PB  - Atlantis Press
SP  - 578
EP  - 587
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-666-6_35
DO  - 10.2991/978-94-6463-666-6_35
ID  - Saiful2025
ER  -

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