Impact of the global financial crisis on two indonesian financial institutions
Global financial crisis, derived from subprime mortgage crisis in US has shown a dramatic impact worldwide. It has shown its most significant effect since mid 2007 and become a full blown financial crisis upon the collapse of Lehman Brother Inc and other international large companies. The global financial crisis has triggered falling of world stock markets, creating instability in the world economy. rnrnThe purpose of this research is to investigate the impact of global financial crisis on bank performances in Indonesia. Objects of the study are Bank Negara Indonesia Tbk. (BBNI) and Bank Mandiri Tbk. (BMRI) Performances in this case is indicated by quarterly basedrnCAMEL ratios since Q4 2006 until Q1 2009, and the crisis variable which is represented by the US S&P500 Composite Index of Stock Prices. rnrnrnrnA simple regression analysis was conducted to obtain the significance of the impact and a paired-sample t-test was accomplished to see the differences in performance between the twornbanks. rnrnThe research findings show that BMRI's performance is significantly affected by global financial crisis, particularly on capital adequacy and liquidity position. While the BBNI performance is not. The significant differences of the global crisis impact generatessignificant differences in total bank's performances between the two.
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