tailieunhanh - Effects of bonds issuance on banking performance

The paper aims to explore how bonds issuance affects banking performance. This paper uses data panel to analyse the data for the period of 2008 to 2012. The result are as follows: BOPO (operational cost to Operational revenue), CAR (capital adequacy ratio), LDR (loan deposits ratio), NIM (Net Interest Margin) statistically significant affected the RoE (return on equity) but NPL (non-performance loan) does not affect RoE. BOPO, CAR, NIM and NPL statistically significant affected the RoA (return on assets), but LDR does not affect the RoA. Bonds issuance does not affect the RoE but affected to the RoA. Crisis period affected the RoE and RoA. The interaction between bond issuance and crisis period affected the RoE and RoA. | Journal of Applied Finance Banking vol. 5 no. 5 2015 113-124 ISSN 1792-6580 print version 1792-6599 online Scienpress Ltd 2015 Effects of Bonds Issuance on Banking Performance Adler Haymans Manurung1 Abstract The paper aims to explore how bonds issuance affects banking performance. This paper uses data panel to analyse the data for the period of 2008 to 2012. The result are as follows BOPO operational cost to Operational revenue CAR capital adequacy ratio LDR loan deposits ratio NIM Net Interest Margin statistically significant affected the RoE return on equity but NPL non-performance loan does not affect RoE. BOPO CAR NIM and NPL statistically significant affected the RoA return on assets but LDR does not affect the RoA. Bonds issuance does not affect the RoE but affected to the RoA. Crisis period affected the RoE and RoA. The interaction between bond issuance and crisis period affected the RoE and RoA. JEL classification numbers G01 D63 Keywords Bonds Issuance Banking Performance Banking Crisis Return on Equity RoE Return on Assets RoA Net Interest Margin 1 Introduction Banking has been being discussed or explored by researchers academicians and government to get idea for decision making for a long time. Banking is not only being the central discussion topic for the government to formulate the right monetary policy but also very important to company as resources of fund to expansion. Banking has big contribution to economic development to one country. Data from PT Finansial Bisnis Informasi showed that bonds issueance by bank increased from IDR 2 74 trillion at 2008 to IDR trillion at 2012. Meanwhile corporate s bonds issuance is higher than it. Bank should issue more long term bond that called subordinated debts to increase CAR. Capital is very important for bank to grow as it is used by bank for its operations which are to raise and to lend the money. Central Bank of Indonesia allows banks issuance of subordinate debts or long term bond to become one of .