INDONESIAN BANKING INDUSTRY PERFORMANCE ANALYSIS: MONTHLY DECLINE TREND WITH WORRYING ANNUAL GROWTH
Girang Permata Gusti
DOI: 10.26480//bedc.01.2024.10.14
ABSTRACT
This research aims to analyze the performance of the banking industry in Indonesia in January 2024. The research method used is descriptive quantitative using secondary data obtained from the Financial Services Authority. Analysis is carried out on credit distribution, collection of Third Party Funds (DPK), and other key financial ratios. Research findings show a monthly decline in credit distribution and deposits, but annual growth is still positive. Working Capital Credit is the main driver of credit growth, with state-owned banksmaking a significant contribution. Covid-19 restructuring credit continues to decline, reflecting post-pandemic economic recovery. Even though DPK experienced a monthly contraction, annual growth remained positive, mainly driven by growth in current accounts. The non-performing loan (NPL) ratio showed a monthly increase, but decreased annually, indicating stability in credit quality. This research recommendation involves multi-period analysis and the addition of variables for further research, with the hope of providing a greater contribution to the strategic decision-making of stakeholders in the Indonesian banking sector.
KEYWORDS
Indonesian Banking Industry, Financial Performance, Credit Distribution, Third Party Funds (DPK)
JOURNAL POLICY
EDITING SERVICES
LATEST NEWS
12 June 2018
Great News!
EDUCATION, SUSTAINABILITY AND SOCIETY (ESS) has been successfully Publish with first issue 2018. Congratulations to all the editorial team!