Indonesian banking: a correlational study between the performance of indonesian banks and changing economic conditions
The purpose of this research is to analyze the performance of Indonesian banks andrntheir level of correlation towards the changing economic conditions in Indonesia. Asrnwe know, financial institutions are the back bone of a country?s financial stability.rnFinancial institutions such as banks provide the financial services that people need.rnHowever, banks that operate within a certain country are subject to the impact of therneconomic stability that particular country is facing. Therefore it is this researchrnpaper?s main goal to discover the impact size of Indonesia?s economic status towardsrnthe many banks that operate within it.rnThis research will show that the impact severity will vary among the differentrnIndonesian banks. The inflation rate in Indonesia does not influence the rate of Non-rnperforming Loan of Indonesian banks to a large degree. It was also discovered that thernIndonesian export levels were highly correlated with the operational income ofrnIndonesian joint venture banks. Lastly, this research will explain the various resultsrnfrom analyzing the correlation between Indonesian economic indicators with thernCapital Adequacy Ratio of Indonesian banks.
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