Regional Development Bank Performanc

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Proceeding, International Conference on Micro Finance
th

th

Kapuas Palace Hotel, Pontianak, Indonesia, May 16 -19 , 2011

ISSN :

REGIONAL DEVELOPMENT BANKS PERFORMANCE IN INDONESIA

Mailda Alfriska, Sri Harryani
meldha@hotmail.com, sri.harryani@yahoo.com
Accounting Department
Faculty of Economics, Gunadarma University
South Jakarta, Indonesia

ABSTRACT
Regional Development Banks (BPD) as one of the banks that exist in the national banking system has a function and a significant role in the context of regional economic development because BPD is able to open service network in areas where that is not economically possible for private banks. This study aims to determine whether the role of Regional Development Banks (BPD) in the regional economy when viewed from the CAR, ROA, and BOPO. Data analysis methods used are Paired Two Sample T test. The results show that the ROA, CAR, and BOPO namely significant (greater than 0.05) so that there is influence on the regional economy BPD.

Keywords: Regional Development Banks, Financial Performance, Economic Activities

1. INTRODUCTION
The financial crisis that hit Indonesia in mid
1997 resulted in the weakening of the
rupiah and not only resulted in financial
crisis, but also resulted in political crises,
security even in moral crisis. Therefore,
economic growth becomes unstable. The
Bank is one institution that acts serve the
interests of the public economy. Thus the
management seeking bank carefully and
professionally because if the management
is wrong in the community who will be
harmed.
Regional Development Banks (BPD) as
one of the banks that exist in the national
banking system has a function and a
significant role in the context of regional
economic development because BPD is
able to open service network in areas
where that is not economically possible for
private banks.

Regional Development Banks (BPD) as
holders of local finance, which has been
provided for in the Act No.l3 in 1962 on the
principles of provision of Regional
Development Banks, who works as a
regional economic development, to work
the local economic development to improve
people's lives, provides financing of
development finance in the region, raise
funds and to implement and save the cash
area (holder / cash storage areas) in
addition to running the banking business.
BPD has a relationship that can not be
separated with the regional economy,
where BPD is standing. Therefore, it is not
surprising that BPD is always attached to
the name of the place of origin of BPD was
established. In addition to running the
activities of commercial banks, BPD also
functions as a cashier administration, such
as the realization of budget funds. Thus,
BPD has different characteristics with other
banks (state-owned, private, foreign and
joint venture) which is most of the Third

Regional Development Banks Performance
(Mailda Alfriska)

1

Proceeding, International Conference on Micro Finance
th

th

Kapuas Palace Hotel, Pontianak, Indonesia, May 16 -19 , 2011

Party Funds (TPF) is a government-owned
funds,
especially
local
government.
Establishment of the BPD is to encourage
development in the area. BPD is directed
to support infrastructure development,
UMKM, agriculture and other economic
activities within the framework of regional
development.
Based on the above background, this
journal examines the role of BPD in
Indonesia.
Knowing
the
Regional
Development
Bank's
Financial
performance indicators consisting of
Return on Assets (ROA), Capital Adequacy
Ratio (CAR), Operating Expenses to
Operating Income (BOPO).
The purpose of this study was to analyze
the role of Regional Development Banks
(BPD) in the economy in Indonesia from
2004 to 201.

2. THEORETICAL BACKGROUND
Ratio is a tool that is expressed in relative
and absolute terms to describe certain
relationships between the factors with each
other than a financial...
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