This Author published in this journals
All Journal Jurnal Siasat Bisnis
Rofikoh Rokhim
Department of Management, Faculty of Economics & Business, Universitas Indonesia, Jakarta, Indonesia

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

Revenue diversification and bank profitability: study on Indonesian banks Muhammad Zaki Ashyari; Rofikoh Rokhim
Jurnal Siasat Bisnis Vol 24, No 1 (2020)
Publisher : Management Development Centre (MDC) Department of Management, Faculty of Business and Economics Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/jsb.vol24.iss1.art3

Abstract

Bank has traditional activities that generate interest income, and non-traditional activities such as underwriting and trading securities, broker-agent, and investment banking, and other activities that generate non-interest income. This paper investigates traditional and non-traditional activities and the impact of revenue diversification on bank profitability. We use the data from the Indonesia banking industry 2007-2016 to measure the impact of revenue diversification, commission revenue, trading revenue, and other revenue on bank return on asset and return on equity. We find that revenue diversification increases bank profitability. However, all the non-interest income has a negative correlation on bank profitability.