Open AccessThe Effect of Lending and Placement of Funds in Other Banks on the Bank's Ability to Increase Profitability
Author(s) -
Nasfi,
Eka Lia Febrianti,
Asnah,
Sabri Sabri
Publication year - 2020
Publication title -
ilomata international journal of management
Language(s) - English
Resource type - Journals
eISSN - 2714-8963
pISSN - 2714-8971
DOI - 10.52728/ijjm.v1i4.140
Subject(s) - profitability index , business , financial system , ordinary least squares , variables , financial statement , finance , accounting , economics , econometrics , mathematics , statistics , audit
This study aims to determine and analyze the effect of lending and placement of funds in other banks on the ability of banks to increase profitability. The study was taken data from one of the XYZ micro banking institutions in West Sumatra, based on year-end financial data from 2009 to 2019. This research uses a quantitative approach. The data source used is secondary data in the form of financial statement data for micro banking institutions for 11 (eleven) years. The data analysis method uses the Ordinary Least Square (OLS) method. The results showed that partially lending had a negative and significant effect on increasing profitability, placement of funds in other banks had a negative and insignificant effect on the increase in profitability of XYZ micro banking. Simultaneously, the variable of credit distribution and placement of funds in other banks has a significant effect on the increase in profitability of the XYZ micro banking institution