Bank competition on credit risk and profitability moderated by foreign bank penetration
Cases on indonesian banking
Keywords:
Bank Competition, Credit Risks, Profitability , Foreign Bank PenetrationAbstract
This research examines and analyzes the Effect of Bank Competition on Credit Risk and Profitability Moderated by Foreign Bank Penetration (Study on Indonesian Banking). The population in this research is all commercial banks registered in the Indonesian Banking Directory issued by the Financial Services Authority (OJK). The sample for this research consisted of 105 banks. The model in this research is commercial banks commercial banks and conventional foreign banks, which are foreign bank units in Indonesia. The data analysis technique was carried out using panel data regression analysis tools with the help of e-views13 software. The results show that banking competition has no significant relationship with banking risk. As assessed by the lerner index, competition has a positive and meaningful connection to banking profitability. Foreign bank penetration can moderate the relationship between competition and profitability. Foreign bank penetration cannot reconcile the relationship between competition and banking risk.
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