DIVERSIFIKASI PENDAPATAN TERHADAP PROFITABILITAS DAN RISIKO BANK DI INDONESIA SELAMA PANDEMI COVID-19
Abstract
Reducing the variability of their income by diversifying outside of traditional lending activities into non-interest income sources. We influence the COVID-19 pandemic on the relationship between the use of non-interest income and bank profits and risks in Indonesian banks. The economic effects of the pandemic have resulted in tightening of credit standards and reduced demand for various types of loans. We find that non-interest income sources are positively related to performance but inversely related to risk. These results are consistent with the beneficial diversification effect during the pandemic of banks expanding outside of traditional loan revenue sources.
Keywords: covid-19, profitability, bank, risk
References
Bank Mulai Genjot Pendapatan Non Bunga, 02 Desember 2019, https://finansial.bisnis.com/read/20191202/90/1176991/bank-mulai-genjot-pendapatan- nonbunga
Berger, A., Hasan, I., Zhou, M., 2010. The effects of focus versus diversification on bank performance: evidence from Chinese banks. J. Bank. Finance 34, 1417–1435.
Blaney, B., 2020. Chart-topping fintech stats for 2020. https://tipalti.com/fintech-stats-for-2020/. https://tipalti.com/, Accessed 15 January 2021.
Corona, Ekonomi RI Minus 5,32 Persen Pada Kuartal II 2020, 5 Agustus 2020, https:// www.cnnindonesia.com/Ekono mi/20200805100401-532-532303/ Corona-Ekonomi-Ri- Minus-532- Persen-Pada-Kuartal-Ii-2020, diakses 5 Agustus 2020.
Chiorazzo, V., Milani, C., Salvini, F., 2008. Income diversification and bank performance: evidence from Italian banks. J. Financ. Serv. Res. 33, 181–203.
DeYoung, R., Roland, K., 2001. Product mix and earnings volatility at commercial banks: evidence from a degree of total leverage model. J. Financ. Intermed. 10, 54–84.
DeYoung, R., Torna, G., 2013. Nontraditional banking activities and bank failures during the financial crisis. J. Financ. Intermed. 22, 397–421.
Edirisuriya, P., Gunasekarage, A., Dempsey, M., 2015. Bank diversification, performance and stock market response: evidence from listed public banks in South Asian countries. 41, 69–85.
Frame, W., Wall, L., White, L., 2019. Technological change and financial innovation in banking: some implications for Fintech. In: Berger, A., Molyneux, P., Wilson, O. (Eds.), Oxford Handbook of Banking, 3rd ed., pp. 262–284.
Kohler, M., 2015. Which banks are more risky? The impact of business models on bank stability.J. Financ. Stab. 16, 195–212.
Lee, C., Yang, S., Chang, C., 2014. Non-interest income, profitability, and risk in banking industry: a cross-country analysis. N. Am. J. Econ. Finance 27, 48–67.
Maudos, J., 2017. Income structure, profitability and risk in the European banking sector: the impact of the crisis. Res. Int. Bus. Finance 39, 85–101.
Mercieca, S., Schaeck, K., Wolfe, S., 2007. Small European banks: benefits from diversification?
J. Bank. Finance 31, 1975–1998.
Meslier, C., Tacneng, R., Tarazi, A., 2014. Is bank income diversification beneficial? Evidence from an emerging economy. J. Int. Financ. Market. Instit. Money 31, 97–126.
Nisar, S., Peng, K., Wang, S., Ashraf, B., 2018. The impact of revenue diversification on bank profitability and stability: empirical evidence from South Asian countries. Int. J. Financ. Stud. 6, 40.
Ross, S., Westerfield, R., Jordan, B., 2016. Fundamentals of Corporate Finance, 11th ed.
McGraw-Hill Education, New York.
Stiroh, K., 2004a. Diversification in banking: is noninterest income the answer. J. Money Credit Bank 36, 853–882.
Stiroh, K., 2004b. Do community banks benefit from diversification? J. Financ. Serv. Res. 25, 135–160.
Stiroh, K., 2006. A portfolio view of banking with interest and noninterest activities. J. Money Credit Bank 38, 1351–1361.
Thakor, A., 2020. Fintech and banking: what do we know? J. Financ. Intermed. 41
.
![](https://www.dimensions.ai/wp-content/uploads/2019/11/cropped-Dimensions_new_colour-01-1-3-1.png"){kind=small}
