PENGARUH BANK MONITORING TERHADAP PROFITABILITAS BANK UMUM TERBUKA DI INDONESIA

Sigit Eko Yulianto
041214353043
Dosen Pembimbing
Drs.Ec.I Made Sudana,MS.

ABSTRACT

This paper attempting to prove the effect of bank monitoring activity
against public commercial bank profitability in Indonesia. Several control
variables also used in this paper including bank size, capital adequacy ratio, LDR,
market concentration level, inflation and economic growth. We employ panel
regression with fixed effect and use period 2009 until 2014.
The result of study finds that bank monitoring activity positively affects
profitability. It means that bank monitoring is an early detection to prevent nonperforming
loan and to prevent bank losses so the bank that could increase its
profitability. This study also shows that LDR positively affects profitability, in
other side CAR and market concentration level negatively affects profitability.

Keywords : profitability, bank monitoring, commercial bank.

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