MARKET STRUCTURE AND MACROECONOMIC ON INDUSTRY PERFORMANCE OF RURAL BANKS IN SOUTHEAST SULAWESI PROVINCE OF INDONESIA
This study aimed to examine the effect of macro-economy and market structure of the industry's performance of rural banks (BPR) in Southeast Sulawesi province using data quarter of the year 2011 to 2013, total population of 12 rural banks in Southeast Sulawesi. The data were analyzed using pane...
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| Format: | Article |
| Language: | English |
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iVolga Press
2020-09-01
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| Series: | Russian Journal of Agricultural and Socio-Economic Sciences |
| Subjects: | |
| Online Access: | https://rjoas.com/issue-2020-09/article_14.pdf |
| _version_ | 1797728479839518720 |
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| author | Sarita B. Syaifuddin D.T. Hajar I. Madjid R. |
| author_facet | Sarita B. Syaifuddin D.T. Hajar I. Madjid R. |
| author_sort | Sarita B. |
| collection | DOAJ |
| description | This study aimed to examine the effect of macro-economy and market structure of the industry's performance of rural banks (BPR) in Southeast Sulawesi province using data quarter of the year 2011 to 2013, total population of 12 rural banks in Southeast Sulawesi. The data were analyzed using panel data by combining a cross-sectional data and time series. The theory used in this study is the Structure-Conduct-Performance (SCP) that proxy to Market concentration (MC) and Relative Efficiency (RE) which proxy to Market Share Deposits (MSD). The study found that (Market Concentration) lowered the performance of (BPR bank industry) and increasing Market Share Deposits improved the performance of BPR bank industry. Furthermore, large (MSD) and greater capital adequacy ratio (CAR), as well as Log to total assets (LTA) and the size of banks improved the performance of BPR bank industry. On the contrary, the market concentration, increasing liabilities to total assets (LTTA), growing non-Performing Loan (NPL) lowered the performance of BPR bank industry in Southeast Sulawesi. Furthermore, the level of LDR and (PIFL) was not able to improve the performance of BPR industry in Southeast Sulawesi Province. This indicates that many (BPR) banks operating during the study period were not efficient in the provision of loans in other words the majority of BPR banks operating in Southeast Sulawesi province were still in a loss position. |
| first_indexed | 2024-03-12T11:14:38Z |
| format | Article |
| id | doaj.art-4b85ea0a80464bb588a5bff361a9c58a |
| institution | Directory Open Access Journal |
| issn | 2226-1184 |
| language | English |
| last_indexed | 2024-03-12T11:14:38Z |
| publishDate | 2020-09-01 |
| publisher | iVolga Press |
| record_format | Article |
| series | Russian Journal of Agricultural and Socio-Economic Sciences |
| spelling | doaj.art-4b85ea0a80464bb588a5bff361a9c58a2023-09-02T02:20:49ZengiVolga PressRussian Journal of Agricultural and Socio-Economic Sciences2226-11842020-09-01105912413310.18551/rjoas.2020-09.14MARKET STRUCTURE AND MACROECONOMIC ON INDUSTRY PERFORMANCE OF RURAL BANKS IN SOUTHEAST SULAWESI PROVINCE OF INDONESIASarita B.0Syaifuddin D.T.1Hajar I.2Madjid R.3Faculty of Economy and Business, Halu Oleo UniversityFaculty of Economy and Business, Halu Oleo UniversityFaculty of Economy and Business, Halu Oleo UniversityFaculty of Economy and Business, Halu Oleo UniversityThis study aimed to examine the effect of macro-economy and market structure of the industry's performance of rural banks (BPR) in Southeast Sulawesi province using data quarter of the year 2011 to 2013, total population of 12 rural banks in Southeast Sulawesi. The data were analyzed using panel data by combining a cross-sectional data and time series. The theory used in this study is the Structure-Conduct-Performance (SCP) that proxy to Market concentration (MC) and Relative Efficiency (RE) which proxy to Market Share Deposits (MSD). The study found that (Market Concentration) lowered the performance of (BPR bank industry) and increasing Market Share Deposits improved the performance of BPR bank industry. Furthermore, large (MSD) and greater capital adequacy ratio (CAR), as well as Log to total assets (LTA) and the size of banks improved the performance of BPR bank industry. On the contrary, the market concentration, increasing liabilities to total assets (LTTA), growing non-Performing Loan (NPL) lowered the performance of BPR bank industry in Southeast Sulawesi. Furthermore, the level of LDR and (PIFL) was not able to improve the performance of BPR industry in Southeast Sulawesi Province. This indicates that many (BPR) banks operating during the study period were not efficient in the provision of loans in other words the majority of BPR banks operating in Southeast Sulawesi province were still in a loss position.https://rjoas.com/issue-2020-09/article_14.pdfstructure conduct performancerelative efficiency theorymacroeconomic performance industrial rural bankpanel data analysis |
| spellingShingle | Sarita B. Syaifuddin D.T. Hajar I. Madjid R. MARKET STRUCTURE AND MACROECONOMIC ON INDUSTRY PERFORMANCE OF RURAL BANKS IN SOUTHEAST SULAWESI PROVINCE OF INDONESIA Russian Journal of Agricultural and Socio-Economic Sciences structure conduct performance relative efficiency theory macroeconomic performance industrial rural bank panel data analysis |
| title | MARKET STRUCTURE AND MACROECONOMIC ON INDUSTRY PERFORMANCE OF RURAL BANKS IN SOUTHEAST SULAWESI PROVINCE OF INDONESIA |
| title_full | MARKET STRUCTURE AND MACROECONOMIC ON INDUSTRY PERFORMANCE OF RURAL BANKS IN SOUTHEAST SULAWESI PROVINCE OF INDONESIA |
| title_fullStr | MARKET STRUCTURE AND MACROECONOMIC ON INDUSTRY PERFORMANCE OF RURAL BANKS IN SOUTHEAST SULAWESI PROVINCE OF INDONESIA |
| title_full_unstemmed | MARKET STRUCTURE AND MACROECONOMIC ON INDUSTRY PERFORMANCE OF RURAL BANKS IN SOUTHEAST SULAWESI PROVINCE OF INDONESIA |
| title_short | MARKET STRUCTURE AND MACROECONOMIC ON INDUSTRY PERFORMANCE OF RURAL BANKS IN SOUTHEAST SULAWESI PROVINCE OF INDONESIA |
| title_sort | market structure and macroeconomic on industry performance of rural banks in southeast sulawesi province of indonesia |
| topic | structure conduct performance relative efficiency theory macroeconomic performance industrial rural bank panel data analysis |
| url | https://rjoas.com/issue-2020-09/article_14.pdf |
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