JURNAL MANAJEMEN INDUSTRI DAN LOGISTIK
Vol 7, No 1 (2023): May 2023

Financial And Macroeconomic Performance Effect On Net Interest Margins At Conventional Commercial Banks In Indonesia

Soeharjoto Soeharjoto (Faculty of Economic and Business Universitas Trisakti, Jakarta)
Debbie Aryani Tribudhi (Faculty of Economic and Business Universitas Trisakti, Jakarta)
Husna Leila Yusran (Faculty of Economic and Business Universitas Trisakti, Jakarta)
Lalu Masyhudi (Sekolah Tinggi Pariwisata Mataram)



Article Info

Publish Date
25 May 2023

Abstract

Banking is an intermediary institution that serves as the driving force of development in Indonesia. Sustainability this institutions depends on the profit derived from Net Interest Margin. However, in its development, bank is influenced by internal performance and macroeconomic conditions. Aims of this study is to determine influence of financial and macroeconomic performance on Net Interest Margin in conventional banking in Indonesia. Net Interest Margin used as dependent variable  and Operating Expenses and Operating Income, Loan to Deposit Ratio, interest rates, exchange rates as independent variable. Used regression method, and monthly time series data form financial services authority in 2017-2020. Loan to Deposit Ratio and interest rate have a positive and significant effect on Net Interest Margin while the exchange rate has a negative and significant effect to Net Interest Margin. However, Operating Expenses and Operating Income have not been shown to affect Net Interest Margin. If Banking performance improves, stable macroeconomic conditions, and regulations that support the banking sector, the Net Interest Margin conditions can be conducive

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Journal Info

Abbrev

JMIL

Publisher

Subject

Decision Sciences, Operations Research & Management Engineering Industrial & Manufacturing Engineering Transportation

Description

Jurnal Manajemen Industri dan Logistik (Industrial and Logistic Management Journal) JMIL, invites academician/researchers/contributors to submit research papers, technical papers, conceptual papers, and case study reports in the scope of Logistics Management, Industrial Marketing, and International ...