Entangling The Relationship Between (Market) Concentration/Power and (Market) Profitability in The Banking Sector: The Case of Indonesia / Bayu Adi GUNAWAN / 2022

Titre : Entangling The Relationship Between (Market) Concentration/Power and (Market) Profitability in The Banking Sector: The Case of Indonesia Type de document : Mémoire Auteurs : Bayu Adi GUNAWAN, Auteur Année de publication : 2022 Importance : 41 p. Note générale : Pour accéder aux fichiers PDF, merci de vous identifier sur le catalogue avec votre compte Office 365 via le bouton CONNEXION en haut de page. Langues : Anglais (eng) Mots-clés : Management CONCENTRATION ; PROFIT ; RENTABILITE Résumé : Many policymakers and academics have long been concerned about whether a change in central bank policy leads to a shift in commercial bank rates. Understanding the main determinants of what factors drive how these rates are changing becomes essential. This research examines the effect of banking market concentration and banking market power (profitability) on loan interest rates in Indonesia. In order to measure market concentration and banking market power, this paper uses three measures: The Herfindahl-Hirschman Index (HHI), the concentration level of the four largest banks - CR(4), and the Lerner Index. This study uses a purposive sampling method with a sample size of 102 Indonesian banks covering 142 months between January 2010 and October 2021. These results indicate that the concentration and strength of the banking market with proxies, The Herfindahl-Hirschman Index (HHI), the concentration level of the four largest banks, and the Lerner Index have a significant positive effect on profitability and loan interest rates. The study also finds that the central bank policy rate affects bank profitability measures in greater magnitude than a change in other variables, both concentrations and individual-level bank performance. These results indicate that large banks maintain power-maximizing lending rates by maintaining their market dominance. Programme : MSc Financial Markets & Technologies Permalink : https://cataloguelibrary.neoma-bs.fr/index.php?lvl=notice_display&id=565295