IDEAS home Printed from https://ideas.repec.org/h/eme/isetez/s1571-038620240000034014.html
   My bibliography  Save this book chapter

Empirical Analysis of the Effects of Microeconomics and Macroeconomics Factors on Bank-risk Taking Behaviour Before and After Covid-19: Evidence from Regional Development Bank (BPD) in Indonesia

In: The Finance-Innovation Nexus: Implications for Socio-Economic Development

Author

Listed:
  • Vinka Amalia Hasta Barata
  • Taufik Faturohman

Abstract

Regarding the crisis caused by the COVID-19 pandemic, regional development banks or Bank Pembangunan Daerah (BPD) are affected by the problem of non-performing loan (NPL) that plagues national banks. This study aims to find which microeconomic and macroeconomic factors significantly influence the regional development banks’ risk-taking behaviour and the effect COVID-19 pandemic on NPL. Microeconomic factors to be examined include credit growth, profitability, capitalisation, capital adequacy, bank size, credit volume, bank liquidity, and operational inefficiency. Macroeconomic factors to be examined include regional economic growth, deposit density (DD), deposits per branch (DB), and specialisation index (SI). This study employs a fixed effect panel data model with robust standard errors. The findings show evidence that credit volume is the only microeconomic factor that significantly influences regional development banks’ risk-taking behaviour. Meanwhile, DD, DB, and SI are the macroeconomic factors that significantly influence regional development banks’ risk-taking behaviour. The effects of the COVID-19 pandemic significantly influence regional development banks’ risk-taking behaviour.

Suggested Citation

  • Vinka Amalia Hasta Barata & Taufik Faturohman, 2024. "Empirical Analysis of the Effects of Microeconomics and Macroeconomics Factors on Bank-risk Taking Behaviour Before and After Covid-19: Evidence from Regional Development Bank (BPD) in Indonesia," International Symposia in Economic Theory and Econometrics, in: The Finance-Innovation Nexus: Implications for Socio-Economic Development, volume 34, pages 177-194, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:isetez:s1571-038620240000034014
    DOI: 10.1108/S1571-038620240000034014
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/S1571-038620240000034014/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S1571-038620240000034014/full/epub?utm_source=repec&utm_medium=feed&utm_campaign=repec&title=10.1108/S1571-038620240000034014
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/S1571-038620240000034014/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/S1571-038620240000034014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Non-performing loan; regional development bank; bank risk-taking behaviour; COVID-19; Indonesia; G21; G28; C33;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:isetez:s1571-038620240000034014. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.