Umanto

The present study focuses on the need for banking sector to be more reactive when facing globalization that could bring impact on banking industries complexity. Based on empirical studies, there is a need to analyze non performing loan determinants comprehensively using macroeconomic and bank-specific factors to make a good condition on bank, because combining macroeconomic and bank-specific variable as NPL determinants has made a big improvement to analyze NPL. The object of present study is 20 Banks listed in Indonesia Stock Exchange (IDX) between q12005-q42014. Using dynamic panel data GMM-system method shows that the previous period of NPL (non performing loan), change of PDB (Gross Domestic Product) and inflation rate have a significantly negative impact on NPL. However, BOPO (Operations Expenses to Operations Income) and ROE (Return on Equity) has a significantly positve relationship to NPL. On the other hand, this research does not find any significance on BI rate (interest rate), solvency ratio, and size to NPL. From the result, it can be concluded that combining macroeconomic and bank-specific variable could be an alternative method to analyze NPL determinants on bank.

Keywords: nonperforming loans, banks, credit risk, globalization, dynamic panel data, banking industries.
JEL Classification: G21, E44, E51, E5, F60

Studies related to intellectual capital, particularly in banking sector, are basically focused on the relationship between intellectual capital performance and bank performance. In con¬trast to previous studies, this study analyzes the intellectual capital performance of regional development banks throughout Indonesia to develop performance through management of efficiency and productivity. The population and sample in this study consist of 26 regional development banks in Indonesia for the period 2007–2013. The management of efficiency is measured using the ratio of operating expense to operating income (BOPO), while the management of labor productivity is measured using the ratio of labor expenses to total operating expense and income level. At the theoretical level, this study is expected to fill the gap for the assessment of intellectual capital performance of banking institutions with unique characteristics such as regional development banks. To analyze intellectual capital performance, VAICTM method developed by Pulic (1998, 2000, 2004, 2008) is applied. The findings show that the intellectual capital performance of regional development banks is in the category of common performers. Finally, regional development banks need to focus on the importance of strengthening intangible resources directly affecting banking management in terms of strengthening information technology, positioning, and management competence, as well as organizational culture and working climate.