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Determinants of Bank Management Confidence Level in Indonesia moderated by Bank Scale

Author

Listed:
  • I Ketut Suyasa
  • Adler Haymans Manurung
  • Jhonni Sinaga
  • Amran Manurung

Abstract

This study examines the determinants of management confidence level of listed bank on the Indonesian Stock Exchange. The confidence level referred to confidence in deciding the deposit interest rate given to customers. The lower the interest rate compared to the other, the bank's management is more confident. This means that with lower deposit interest, management remains confident that customers remain loyal. This research used Model Panel Data to estimate determinants Banks Management Confidence Level in Indonesia moderated by Bank Scale. Banking ratio and macroeconomic data for period 2017 and 2021 become variable research in this paper. This research found that CAR and NPL has positive and significant effect on IETDR at level of Significant of 5%. Inflation and COVID have negative and significant effect on IETDR. Bank Scale or Bank Book as moderating variable could strength to IETDR for CAR and NPL.  JEL classification numbers: C33, G21, L25, M21, N25, O16, P34.

Suggested Citation

  • I Ketut Suyasa & Adler Haymans Manurung & Jhonni Sinaga & Amran Manurung, 2023. "Determinants of Bank Management Confidence Level in Indonesia moderated by Bank Scale," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 13(3), pages 1-7.
    • Handle: RePEc:spt:apfiba:v:13:y:2023:i:3:f:13_3_7
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    References listed on IDEAS

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    1. repec:cup:cbooks:9781108422536 is not listed on IDEAS
    2. Eko Fajar Cahyono & Lina Nugraha Rani & M. Fariz Fadillah Mardianto, 2021. "Determinants Of Indonesian Conventional And Islamic Bank Depositor Trust During The Covid-19 Pandemic," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 7(Special I), pages 1-32, March.
    3. repec:bla:pacecr:v:23:y:2018:i:2:p:131-149 is not listed on IDEAS
    4. Brooks,Chris, 2019. "Introductory Econometrics for Finance," Cambridge Books, Cambridge University Press, number 9781108436823, October.
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    More about this item

    Keywords

    Confidence; CAR; NPL; ROA; covid; Inflation; Interest Rate; Customer Satisfaction.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

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