THE BRANCH EXPANSION AND THE PERFORMANCE OF THE BANKS: THE CASE OF INDONESIA

Authors

Hery Prasetyo, Sepuluh November Intitute of Technology, IndonesiaFollow
Sony Sunaryo, Sepuluh November Intitute of Technology, IndonesiaFollow

Document Type

Article

Abstract

Opening new branches may help the banks to expand and is a priority for the banks to enlarge the public inclusion. Indonesian banking industry is currently not efficient and still focus more on networking the branches than improving the banking access to the public. This paper utilize the path analysis to see the link betweeen the branch expansion and the performance of the banks. The analysis shows that the increase of the number of branches and employees does not significantly influence the financial performance of the banking industry from the period of 2011-2012. This prove that the inefficiency of banking industry as one of the performance indicators of banking is not the main factor that be caused by increasing the number of branches and employees.

Recommended Citation

Prasetyo, Hery and Sunaryo, Sony (2015) "THE BRANCH EXPANSION AND THE PERFORMANCE OF THE BANKS: THE CASE OF INDONESIA," Bulletin of Monetary Economics and Banking: Vol. 18: No. 1, Article 1.
DOI: https://doi.org/10.21098/bemp.v18i1.518
Available at: https://bulletin.bmeb-bi.org/bmeb/vol18/iss1/1

First Page

85

Last Page

106

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Sepuluh November Intitute of Technology