Title: DETERMINANTS OF NET INTEREST MARGIN IN BANKING IN 5 COUNTRIES OF THE SOUTHEAST ASIA REGION
Author: MADE GITANADYA AYU ARYANI
Item Type: Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
Banking in the Southeast Asia region has different characteristics between countries and this has an impact on the size of the Net Interest Margin (NIM) obtained. Banks in Indonesia enjoyed a NIM of 5.4% and Singapore only 1.4% in the same year. So this research aims to find out what factors influence the determination of NIM in banking in 5 countries in the Southeast Asia region, namely Indonesia, Malaysia, Thailand, Singapore and the Philippines. This research classifies various determinants that influence NIM into 3 main factors, namely bank-specific factors consisting of relative size, credit risk, liquidity, capital adequacy, operational risk and diversification. Apart from that, this research also uses industry concentration factors and macroeconomic factors consisting of short-term interest rate volatility, inflation, GDP growth and capital market capitalization. The research results show that NIM in the Southeast Asia region is significantly influenced by the variables relative size, credit risk, capital adequacy, diversification, industry concentration, short-term interest rate volatility, and capital market capitalization. The variables of capital adequacy, operational risk and GDP growth have a positive influence on all observations in this study even though the level of significance differs between countries. Meanwhile, the variables that have a negative influence on NIM in all observations are diversification and capital market capitalization, only the level of significance differs between countries.
Keywords: Net Interest Margin, bank specific factors, industry factors, macroeconomic factors, Southeast Asia, banking
Sources: http://repository.unair.ac.id/61099/
