The Effect of Bank Performance Factors on the Bank’s Profitability in Indonesia Banks

Abstract

Banking is one of the important sector in the economic growth of Indonesia. To maintain the sustainability and increase the profitability of the banks, banks needs to manage the factors which influence it, such as implement an effective risk management and providing mobile banking services. This research will analyze the effect of bank performance factors on the banks’ profitability by collecting the data of 14 Banks in Indonesia from 2013-2020 to compare the condition of the banks before and after the implementation by using data panel regression and dummy variables. The expected result provides insight about the factors that should be a concern for Indonesian Banks and also about Indonesian Banking in providing financial inclusion by offering digital banking services, which is mobile banking.

Keywords: bank performance factors, mobile banking, bank’s profitability, data panel regression, dummy variables