The Effect of Exchange Rates and Interest Rates of Four Large Economies on the Health of Banks in ASEAN-3

Purwono, Rudi; TAMTELAHITU, Jopie; Mubin, Muhammad

doi:10.13106/jafeb.2020.vol7.no10.591

Cited by 3 publications

(2 citation statements)

References 13 publications

(13 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This is because the foundation of the banking system is Basel 3 and Basel 4 banks, which have good liquidity, good asset quality, and low credit risk. In the short run, NPL Indonesia is determined by money supply, while in the long run, it is determined by exchange rate and foreign interest rate (Purwono et al, 2020). These results are inconsistent with the study by (Banyen and Biekpe, 2021), which states that bank liquidity harms profitability.…”

Section: Discussionmentioning

confidence: 67%

Determinants Of Conventional Bank Profitability: Is Covid-19 Matter?

Khalifaturofi'ah,

Indra Listyarti,

Ririn Poerwanti

2023

View full text Add to dashboard Cite

This study delves into the determinants of profitability in conventional banks. This study uses a quantitative method to analyze the factors influencing bank profitability. This study uses balanced panel data using the fixed-effects model from 18 conventional banks from 2009 to 2021 in Indonesia. The results suggest that COVID-19 has a negative impact on profitability. Nevertheless, bank specifics such as capital and bank size positively influenced profitability, while efficiency significantly negatively influenced profitability. Moreover, this study delves into macroeconomic indicators, revealing their pronounced significance. Economic growth and interest rates emerged as substantial drivers, positively shaping bank profitability. Conversely, the exchange rate exerted a noteworthy negative influence on profitability. Bank stakeholders are expected to improve performance by increasing the bank's capital and assets. A bank should be able to increase its size through its total assets. Monetary policies, such as controlling interest and exchange rates, are found to be an important factor in determining banking profitability.

show abstract

Section: Discussionmentioning

confidence: 67%

Determinants Of Conventional Bank Profitability: Is Covid-19 Matter?

Khalifaturofi'ah,

Indra Listyarti,

Ririn Poerwanti

2023

View full text Add to dashboard Cite

show abstract

“…Such high standard deviation was due to the change in the external and internal environment of selected ASEAN countries. It was reported by Purwono et al (2020) that Malaysia is the country most exposed to the external environment. However, Thailand's NPLs are primarily influenced by the local environment.…”

Section: Results and Interpretationsmentioning

confidence: 99%

Financial Innovation, Sustainable Economic Growth, and Credit Risk: A Case of the ASEAN Banking Sector

Khan

Fareed

Salameh

et al. 2021

Front. Environ. Sci.

View full text Add to dashboard Cite

A dynamic and rapidly changing global financial environment is posing various risks for the banking sector. Therefore, the future of the Association of Southeast Asian Nations (ASEAN) banks depends on how efficiently and effectively they manage these risks. Among these risks, a credit risk is the most crucial risk for the banking sector. Thus, the current study aims to analyze the impact of financial innovation and sustainable economic growth on the credit risk of ASEAN banks. For this purpose, a sample of 4 ASEAN countries from 2011 to 2018 is selected, and by applying a panel-corrected standard error (PCSE) approach, both variables were found to be a significant contributor toward the credit risk. Current research will not only be beneficial for the management of ASEAN countries’ banks but also provide help to the overall financial industry and their respective regulatory bodies to understand the behavior of ASEAN banks’ credit risk regarding financial innovation and economic growth. Thus, this study will play an essential role concerning the stability of the banking sector in the ASEAN region.

show abstract

Currency Exchange Rate Volatility as a Moderating Effect of the Gold and Coal Price Against Fund Age and Mutual Fund in Indonesia

Azis,

Hidayati,

Abidin

et al. 2024

Economics

View full text Add to dashboard Cite

Shifts in gold and coal prices have a crucial impact on the macro economy, especially investment growth. On a financial scale, there is still little discussion of the relationship between gold and coal prices and stock mutual funds. Also, the role of exchange rates and interest rates in moderating this relationship has not been examined. This research reviews the performance of exchange-traded funds (ETFs) in the scope of fund age and Indonesian stock mutual funds which are influenced by gold and coal prices with the moderating effect of interest rates and exchange rates. Core data was obtained from 20 companies as mutual fund owners officially registered with the Financial Services Authority (OJK) throughout 2019–2022. By operating Moderated Regression Analysis (MRA) into SmartPLS 4, there are interactions between prices and exchange rates, prices and interest rates, and prices and gold prices. As with the relationship between the age of ETF mutual funds traded on the Indonesian Stock Exchange (IDX) and the gold price, these two variables have a strong and positive correlation. This implies that relatively small changes in gold prices over the monitoring period may impact the fund age ETF. This positive association shows that an ETF investment can have its life extended by a relatively small increase in gold prices. This research indicates a strong causality, which improves the ETF’s performance on the IDX as fund age rises. Furthermore, the second model examines how fund age, gold, and coal have a direct impact on ETF mutual fund performance. It also looks closely at how indirectly coal, gold, and fund age affect ETF performance. The age of the fund, gold, coal, and exchange rates affect the performance of ETFs. While the effect is not statistically significant, interest rates, gold, coal, and fund age have a beneficial impact on ETF performance. Implications for policy makers to monitor and re-evaluate commodity price fluctuations using mining production regulation scenarios that are balanced with quality. Weaknesses of the current study such as the observation period need to be taken into consideration in future research.

show abstract

The Effect of Exchange Rates and Interest Rates of Four Large Economies on the Health of Banks in ASEAN-3

Cited by 3 publications

References 13 publications

Determinants Of Conventional Bank Profitability: Is Covid-19 Matter?

Determinants Of Conventional Bank Profitability: Is Covid-19 Matter?

Financial Innovation, Sustainable Economic Growth, and Credit Risk: A Case of the ASEAN Banking Sector

Currency Exchange Rate Volatility as a Moderating Effect of the Gold and Coal Price Against Fund Age and Mutual Fund in Indonesia

Contact Info

Product

Resources

About