Abstract:
The purpose of this study is to analyze the impact of NIM, ERM and macroeconomics
performance towards bank performance of state-owned commercial banks in Indonesia
and China during 2016-2017. Indonesia and China are predicted to have crucial roles
in global financial leader in the future due to huge population and recent financial
performance. This study will compare NIM, ERM,macroeconomics performance and
state-owned commercial banks’ performance between Indonesia and China. The
findings show that even though China has better macroeconomics performance
compared with Indonesia, but state-owned commercial banks in China have worse
performance in term of management performance and earnings performance compared
with state-owned commercial banks in Indonesia. Furthermore, this study implements
data panel GLS regression – random effect by STATA. As Casu et al (2009) mention
that macroeconomics performance has positive impacts towards bank performance,
therefore this study analyze the impact of macroeconomics performance towards the
bank performance with unit analysis of state-owned commercial banks in Indonesia and
China. The statistics results show that GDP growth rate has negative impact towards
bank performance.In short, this study shows that higher macroeconomics performance
would not guarantee that state-owned commercial banks will have higher bank
performance as well.
