Title: THE INFLUENCE OF FUNCTIONAL COMPETENCE ON BANKING PERFORMANCE IN BANK IN JAKARTA

Author: Helen Erlyana Sihombing

Affiliations: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya

Publisher: Universitas Airlangga

Abstract

Economic globalization causes business competition in various industries to take place dynamically in line with environmental changes. The banking sector in Indonesia since the regulations in 1988 which were then followed by other regulations has experienced very fundamental changes, since that period the banking sector has developed very rapidly, and this can be seen from the very large growth in the number of banks. As a result of this growth, competition in the banking sector became increasingly competitive. This condition became increasingly difficult due to the recession in the 1997 period which was marked by many banks experiencing liquidation difficulties and even having to be liquidated by the government.

On the other hand, economic globalization as a form of market openness requires banks to be able to adapt international regulations, in accordance with those stipulated in the Bank for International Settlement (BIS), so that banks, apart from having to adapt to increasingly sharp competitive conditions and economic conditions that are currently in recession, also have to fulfill BIS provisions to be able to carry out business activities internationally. The existence of banking in maintaining its business continuity must be supported by functional field competencies consisting of marketing, technology and operational competencies.

This research analyzes the influence of banking functional competency (marketing, technology and operations) on banking performance which is set as the Bank's assessment standard. From the results of this research, it can be concluded that marketing competence, technology competence and operational competence in banking have a significant influence on banking financial performance in banks in Jakarta.

This research is expected to provide information for the banking sector in developing sources of excellence in functional areas in order to improve performance and achieve a level of soundness as determined by Bank Indonesia.

Keywords: Marketing Competency, Innovation Competency, Operational Competency, and Banking Performance

Sources: http://repository.unair.ac.id/34702/