Authors:

Adella Febriana, Suhel Suhel, Sri Andaiyani

Abstract:

“This study analyzes the effect of competition banks on credit risk in the dual banking system in Indonesia. This research was conducted using a purposive sampling technique in selecting a sample of 5 conventional commercial banks and 5 Islamic commercial banks. The method used is the Generalized Method of Moments (GMM) from 2011 to 2020. Credit risk for Conventional Banks is measured by the value of Non-Performing Loan (NPL), while Islamic Bank Financing is measured by the value of Non-Performing Financing (NPF). The results of this study indicate that Return on Assets (ROA) for Conventional Banks and Islamic Banks has a significant effect on credit risk in the dual banking system, Loan to Deposit Ratio (LDR) for Conventional Banks does not have a significant effect on Non-Performing Loan (NPL) while Financing to Deposit Ratio (FDR) of Islamic Banks has a significant level 2 influence on Non-Performing Financing (NPF). Bank size does not have a significant influence on credit risk in the dual banking system, and the Lerner Index for Conventional Banks has a significant effect on Non-Performing Loan (NPL), while the Lerner Index for Islamic Banks has no effect on Non-Performing Financing (NPF). The Central Bank in making policies can see that the level of competition for banks in the dual banking system in Indonesia is categorized as a monopolistic competition market, where each bank has its own market segment so that it has market power that is strong enough to set prices that are relatively.”

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https://jurnal.harianregional.com/jekt/full-111621

Published

2024-01-12

How To Cite

FEBRIANA, Adella; SUHEL, Suhel; ANDAIYANI, Sri. Analyzing the Influence of Bank Competition on Credit Risk: Perspectives from Indonesia’s Dual Banking System.Jurnal Ekonomi Kuantitatif Terapan, [S.l.], v. 17, n. 1, p. 52-62, jan. 2024. ISSN 2303-0186. Available at: https://jurnal.harianregional.com/jekt/id-111621. Date accessed: 08 Jul. 2024. doi:https://doi.org/10.24843/JEKT.2024.v17.i01.p04.

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Issue

Vol 17 No 1 (2024): Vol.17.2. FEBRUARI 2024[1-154]

Section

Articles

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