Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2022)

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The Effect of Liquidity, Efficiency, and Overhead on Bank Profitability

Authors
Nanik Linawati1, *, Moeljadi2, Djumahir2, Siti Aisjah2
1Doctoral Program of Management Science, Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia
2Lecturer Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia
*Corresponding author. Email: nanikl@petra.ac.id
Corresponding Author
Nanik Linawati
Available Online 16 May 2023.
DOI
10.2991/978-94-6463-178-4_6How to use a DOI?
Keywords
Liquidity; bank efficiency; overhead; Bank Profitability
Abstract

The bank’s top management’s efforts to manage the bank operations increase sustainable profitability. This study examines the effect of liquidity, efficiency, and bank overhead on the profitability of banks in Indonesia that implement digital banking. Bank profitability has an essential role as a measure of the success of bank operations in balancing Asset Liability Management efficiently. This paper examines the determinants of the bank’s profitability in Indonesia. The research sample is the six banks in Indonesia that implemented digital banking from 2007 to 2019. The data analysis used multiple regression analysis. The results showed that liquidity, efficiency, and bank overhead significantly influenced banks’ profitability in Indonesia simultaneously. The effect obtained partially is that liquidity has a significant impact on increasing research profitability. In addition, bank efficiency carried out by management can have a positive impact on profitability. Finally, bank overhead can increase the profitability of bank in Indonesia. This research contributes to the theory of corporate financial management and provides insight for bank managers in increasing profitability on an ongoing basis.

Copyright
© 2023 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 BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
16 May 2023
ISBN
978-94-6463-178-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-178-4_6How to use a DOI?
Copyright
© 2023 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.

Cite this article

risenwbib
TY  - CONF
AU  - Nanik Linawati
AU  - Moeljadi
AU  - Djumahir
AU  - Siti Aisjah
PY  - 2023
DA  - 2023/05/16
TI  - The Effect of Liquidity, Efficiency, and Overhead on Bank Profitability
BT  - Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2022)
PB  - Atlantis Press
SP  - 42
EP  - 51
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-178-4_6
DO  - 10.2991/978-94-6463-178-4_6
ID  - Linawati2023
ER  -