Main Article Content
The purpose of this study is to examine the effect of Loan Growth, Unemployment, BOPO, CAR, Inflation, and Exchange Rate in relationship with Net Interest Margin. The research object used is banking data BUKU I to BUKU IV 2009-2018 published by Financial Service Authority, known as OJK. The analysis technique used is panel data regression analysis with Eviews 9.0 analysis tool. The results showed that the variables which consist of Loan Growth, and Unemployment had a significant positive effect on Net Interest Margin. Other independent variables, which consist of BOPO and Exchange Rate had a significant negative effect on Net Interest Margin. While CAR and Inflation do not show a significant impact on Net Interest Margin.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
The author sends the manuscript with the understanding that if accepted for publication, the copyright of the article belongs to the author and retains publishing rights without restriction.
Copyright includes the non-exclusive right to reproduce and submit articles in all forms and media, including reprints, photographs, microfilm, and other similar reproductions, as well as translations. Reproduction of any part of this journal, its storage in the database and its transmission by all forms of media, such as electronic, electrostatic and mechanical copies, photocopying, recording, magnetic media, etc.
The journal editorial board makes every effort to ensure that no false or misleading data, opinions, or statements are published in the journal. Either way, the contents of articles and advertisements published in journals are the sole and exclusive responsibility of each writer and advertiser.
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Attribution 4.0 International (CC BY-SA 4.0)
- Abiodun, BY (2012). Significance of accounting information on corporate values of firms in Nigeria. Research Journal in Organizational Psychology & Educational Studies. Vol 1, pp. 105-113.
- Alemu, M. & Aweke, M. (2017). Financial performance analysis of private commercial banks of ethiopia: camel ratings. International Journal of Scientific and Research Publication. Vol. 7, pp. 10. Retrieved from http://www.ijsrp.org/research-paper-1017/ijsrp-p7045.pdf
- Bank Indonesia Circular Letter Number 15/7/DPNP dated March 8, 2013 regarding the Opening of Commercial Bank Office Networks Based on Core Capital.
- Basuki, AT, & Prawoto, N. (2016). Regression Analysis in Research Economy & Business. Jakarta: Raja Grafindo.
- Bernanke, B., & Blinder, A. (1992). The federal fund rate and the channels of monetary transmission. American Economic Review. Vol. 82 (4), September, pp. 901-921. Retrieved from http://www.jstor.org/stable/2117350
- Benmelech. (2010). The Credit Rating Crisis.NBER Macroeconomics Annual 2009, Vol. 24, pp. 161-207. Doi: 10.3386/w15045
- Boyd, JH, Hu, J., & Jagannathan, R. (2006). The stock market's reaction to unemployment news: Why bad news is usually good for stocks. The Journal of Finance, Vol. 60 (2), pp. 649-672. Retrieved from https://www.jstor.org/stable/3694763
- Databoks. (2018). The bank with the largest Net Interest Margin in ASEAN. Accessed March 28, 2018 from http://databoks.katadata.co.id/datapublish/218
- Fahruri, Arief. (2017). Influence of Corporate Governance, Loan to Deposit Ratio, Non-Performing Loans, Inflation and Exchange Rate on Financial Performance Banking Companies Listed on the Stock Exchange in 2007- 2010. LPPM Bina Sarana Informatika University Jakarta. Vol. 15, No. 1. doi: 10.31294/jp.v15i1.1500
- Financial Services Authority Circular Letter Number 14 / SEOJK.03 / 2016 concerning concerning the Opening of Commercial Bank Office Networks Based on Core Capital.
- Firdaus, R. & Ariyanti. (2011). Commercial Bank Credit Management Fifth Matter. Bandung: Alfabeta.
- Georgantopoulus, AG, & Tsamis, AD (2013). The Macroeoconomic Effects of Budget Deficits in Greece: A VAR-VECM Approach. International Research Journal of Finance and Economics. Vol.79, pp. 1450-2887. doi: 10.4236/vp.2020.64020
- Hawtrey, K., & Liang, H. (2008). Bank of interest margins in OECD countries. The North American Journal of Economics and Finance, Vol. 19. pp. 249-260. doi: 10.1016/j.najef.2008.07.003
- Hidayat, T., Hamidah, & Umi, M. (2012). Analysis of Characteristics Influence Banks and Inflation Against Net Interest Margin Case Studies in Banks Conventional Registered in Indonesia Stock Exchange 2006-2010. Indonesian Science Management (JRMSI), 3 (1): 1-15. doi: 10.1016/j.najef.2008.07.003
- Igan, D. and Tamirisa, N. (2009). Credit growth and bank soundness: evidence from emerging Europe. Research Department, International Monetary Fund.
- ILO. (2013). Statistics of work, employment and labor underutilization, the 19th International Conference of Labor Statisticians. Geneva
- IMF. (2013). Determinant of bank's net interest margin in Honduras. IMF Country Report.
- Kisman, Zainul. (2017). Model For Overcoming Decline in Credit Growth (Case Study of Indonesia with Time Series Data 2012M1-2016M12). Journal of the Internet Banking and Commerce, Vol. 22, pp. 1-11. Retrieved from https://www.icommercecentral.com/open-access/model-for-overcoming-decline-in-credit-growth-case-study-of-indonesia-with-time-series-data-2012m12016m12.pdf
- Kosmidou, K. (2008). The determinants of banks' profits in Greece during the period of EU financial integration. Managerial Finance, Vol. 34, No. 3, pp. 146-159. Doi: 10.1108/03074350810848036
- Manurung, H., Deniswara & Kartika. (2020). Determinant of net interest margin in indonesia bank moderated by risk. International Journal of Advanced Science and Technology. Vol. 29, No. 5, (2020), pp. 11317-11328. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/25231/13449
- Mankiw. (2012). Introduction to Macro Economics. Jakarta: Salemba Empat.
- Maudos & Guevara, F. (2004). Factors explaining the interest margin in the banking sectors of the european union. Journal of Banking & Finance 9/28, pp. 2259-2281. doi: 10.1016/j.jbankfin.2003.09.004
- Mendes, V., & Abreu, M. (2003). Do macro-financial variables matter for european bank interest margins and profitability? CNVM, Lisbon, Retrieved from https://ecomod.net/sites/documentconference/ecomod2003/ Abreu.pdf.
- Nihayati, A., Wahyudi. S., & Syaichu, M. (2014). Effect of Bank Size, BOPO, Credit Risk, Credit Performance, and Market Strength on the Net Interest Margin. Business Strategy Journal, Vol. 23, No. 2, pp. 14-44. doi: 10.14710/jbs.23.2.14-44
- Nopirin (2012). Introduction to Macro and Microeconomics. Yogyakarta: BPFE.
- Ordine, P. & Rose, G. (2008). Local banks efficiency and employment. LABOR, Vol. 22, Issue 3, pp. 469-493. DOI: 10.1111/j.1467-9914.2008.00422.x
- Pandia, Frianto. (2012). Fund Management and Bank Health. Print First. Jakarta: Rineka Cipta.
- Rahardjo. (2014). The Determinants of Commercial Bank's Interest Margin in Indonesia: An Analysis of Fixed Effect Panel Regression. International Journal of Economics and Financial Issues. Vol. 4, No. 2, 2014, pp.295-308. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/689/pdf
- Ram, B. & Mesfin, E. (2019). Determinants of net interest margin in selected commercial banks in Ethiopia. IJSRR 2019, Vol. 8 (1), pp. 1646-1655. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3370557
- Rasiah. (2010). Theoretical framework of profitability as applied to commercial banks in Malaysia. European Journal of Economics, Finance and Administrative Sciences, Vol. 19, pp. 75 - 97.
- Rolianah. (2018). Effect of Macroeconomics on Banking Performance Indonesia. Sunan Ampel State Islamic University.
- Saksonova, S. (2014). The role of net interest margins in improving banks' asset structure and assessing the stability and efficiency of them operations. 10th International Strategic Management Conference, pp. 132-141. Elsevier Ltd. doi: 10.1016/j.sbspro.2014.09.017
- Saunder, A. & Schumacer, L. (2000). The determinants of bank interest rates margins: an international study. Journal of International Money and Finance, Vol 19, pp. 813-832. doi: 10.1016/S0261-5606(00)00033-4
- Sanderson. (2018). The Sociology of Development Handbook. University of California Press, pp. 117.
- Saad, W., & Chawki, El-M. (2012). The determinants of net interest margins of commercial banks in Lebanon. Journal of Money, Investment and Banking, Vol 10 (23), pp. 118-132.
- Silalahi, T., Manurung & Hidayat. (2015). The Market Structure of the Bank, Its Performance, and The Macroprudential Policy. Bulletin The economy Monetary and Banking, Volume 18, Number 1.
- Sugiono. (2016). Educational Research Methods. Bandung: Alfabeta.
- Taurus, Daniel K, Chekol, Yhonas & Mutwol, M. (2012). Determinants of net interest margin of commercial banks in Kenya: A Panel Study. Procedia Economicand Finance, Vol. 2, pp. 199 - 208. Doi: 10.1016/S2212-5671(12)00080-9
- Republic of Indonesia Law Number 10 Year 1998 dated November 10, 1998 about banking.
- Zhou, K., & Wong, Michael CS. (2009). The Determinants of Net Interest Margins of Commercial Banks in Mainland China. Emerging Markets and Finance Trade. Vol. 44 (5), September-October, pp. 41−53. doi: 10.2753/REE1540-496X440503