Title: THE INFLUENCE OF FUNCTIONAL COMPETENCIES ON BANKING PERFORMANCE IN BANKS IN JAKARTA
Authors: Helen Erlyana Sihombing
Affiliations: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya
Publisher: Universitas Airlangga
Abstract
Economic globalization has led to dynamic business competition across various industries, in line with environmental changes. Since the introduction of regulations in 1988, followed by other regulations, the banking sector in Indonesia has undergone fundamental changes. Since that period, the banking sector has grown rapidly, as evidenced by the significant growth in the number of banks. As a result of this growth, competition in the banking sector has become increasingly competitive. This situation was further complicated by the recession in 1997, marked by many banks experiencing difficulties in liquidating and even being forced into liquidation by the government.
On the other hand, economic globalization as a form of market openness requires banks to be able to adapt to international regulations, in accordance with those stipulated in the Bank for International Settlements (BIS). Therefore, banks must not only adapt to increasingly fierce competition and economic recession, but also comply with BIS regulations to be able to conduct business activities internationally. The existence of banks in maintaining their business continuity must be supported by functional competencies consisting of marketing, technology, and operational competencies.
This study analyzes the influence of functional banking competencies (marketing, technology, and operations) on banking performance, which is established as a standard for bank assessment. The results of this study conclude that marketing, technology, and operational competencies in banking significantly influence the financial performance of banks in Jakarta.
This research is expected to provide information for the banking sector in developing sources of excellence in functional areas to improve performance and achieve the level of health as determined by Bank Indonesia
Keywords: Marketing Competency, Innovation Competency, Operational Competency, and Banking Performance
Sources: http://repository.unair.ac.id/34702/