THE ROLE OF ASSET QUALITY, LIQUIDITY RISK, LOW COST FUNDS, AND SUSTAINABLE BONDS AS DETERMINANTS OF NET INTEREST MARGIN, WITH LOAN GROWTH AS THE MODERATING VARIABLE: A Case Study on Big-Size and Mid-Size Conventional Banks in Indonesia from 2017 - 2023

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Febrianus, Alessandro (2025) THE ROLE OF ASSET QUALITY, LIQUIDITY RISK, LOW COST FUNDS, AND SUSTAINABLE BONDS AS DETERMINANTS OF NET INTEREST MARGIN, WITH LOAN GROWTH AS THE MODERATING VARIABLE: A Case Study on Big-Size and Mid-Size Conventional Banks in Indonesia from 2017 - 2023. Undergraduate thesis, institute ipmi.

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Abstract

This study examined the role of asset quality, liquidity risk, low cost fund, and sustainable bonds as determinants of net interest margin, with loan growth as the moderating variable. The research object is mid-size and big-size banks listed on the Indonesian Stock Exchange (IDX) during the 2017-2023 period. Data were collected from 13 banking companies that fall under the category of KBMI III and KBMI IV. This study was carried out using a panel data regression model with a total of 91 observations. According to the test, it suggest the author to use Fixed Effect Model (FEM) for the parameter estimation. The study confirms that the net interest margin can be significantly influenced by liquidity risk and low cost fund, where both of which have a negative effect on the net interest margin. On the other hand, asset quality and sustainable bonds were stated to have no significant influence on net interest margin. Additionally, this study found that loan growth was not capable of moderating the relationship between net interest margin and the determinant factors, due to its insignificant effect. These findings are expected to shed light on the mixed findings of previous research and offers new insight on the specific topic of determinant factors of net interest margin.

Item Type: Thesis (Undergraduate)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Thesis > Bachelor of Business Administration
Depositing User: sandra margaretha
Date Deposited: 26 Feb 2025 08:13
Last Modified: 26 Feb 2025 08:13
URI: http://repository.ipmi.ac.id/id/eprint/2686

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