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Author: 黃晶晶
Gabriela Ilona
Thesis Title: 普惠金融對印尼商業銀行盈利能力的影響
The Impact of Financial Inclusion on the Profitability of Commercial Banks in Indonesia
Advisor: 謝劍平
Joseph C.P. Shieh
Committee: 劉代洋
Day-Yang Liu
陳俊男
Chun-Nan Chen
Degree: 碩士
Master
Department: 管理學院 - 財務金融研究所
Graduate Institute of Finance
Thesis Publication Year: 2021
Graduation Academic Year: 109
Language: 英文
Pages: 69
Keywords (in Chinese): financial inclusionbank profitabilitybank branchesATMsloansdepositscredit cardsinternet bankingROAROE
Keywords (in other languages): financial inclusion, bank profitability, bank branches, ATMs, loans, deposits, credit cards, internet banking, ROA, ROE
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  • Bank Indonesia has a plan to increase financial inclusion by targeting the whole country, especially the middle and lower income classes. All communities are supposed to have convenient access to banking products and services. Banks in Indonesia are governed by rules that are significantly different from those that apply to non-banking businesses. As a result, they have the ability to influence the effectiveness of supervisory procedures. The major goal of this study is to determine the impact of financial inclusion on commercial banks profitability in Indonesia, as well as to determine which variables have the most impact on commercial bank profitability. The study was built on the foundations of agency theory, financial inclusion theory, and financial profitability theory. The sample for the research includes commercial banks listed on the Indonesia Stock Exchange; in the end there are 26 commercial banks included. The study included the years 2015 to 2019. The data was analyzed using multiple regression analysis. Hypotheses were evaluated at a 5% level of significance. Financial inclusion metrics from banks, such as the number of branches, ATMs, loans, deposits, credit cards, and internet banking, were utilized as predictors in this study. Changes in branches, ATMs, loans, deposits, credit cards, and m-banking were found to account for the majority of the variation in bank profitability, particularly ROA and ROE. The findings show that the independent variables (financial inclusion), which comprise branches, ATMs, loans, deposits, credit cards, and m-banking/e-banking, have a significant impact on financial profitability when used collectively.


    Bank Indonesia has a plan to increase financial inclusion by targeting the whole country, especially the middle and lower income classes. All communities are supposed to have convenient access to banking products and services. Banks in Indonesia are governed by rules that are significantly different from those that apply to non-banking businesses. As a result, they have the ability to influence the effectiveness of supervisory procedures. The major goal of this study is to determine the impact of financial inclusion on commercial banks profitability in Indonesia, as well as to determine which variables have the most impact on commercial bank profitability. The study was built on the foundations of agency theory, financial inclusion theory, and financial profitability theory. The sample for the research includes commercial banks listed on the Indonesia Stock Exchange; in the end there are 26 commercial banks included. The study included the years 2015 to 2019. The data was analyzed using multiple regression analysis. Hypotheses were evaluated at a 5% level of significance. Financial inclusion metrics from banks, such as the number of branches, ATMs, loans, deposits, credit cards, and internet banking, were utilized as predictors in this study. Changes in branches, ATMs, loans, deposits, credit cards, and m-banking were found to account for the majority of the variation in bank profitability, particularly ROA and ROE. The findings show that the independent variables (financial inclusion), which comprise branches, ATMs, loans, deposits, credit cards, and m-banking/e-banking, have a significant impact on financial profitability when used collectively.

    TABLE OF CONTENTS ABSTRACT i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii LIST OF TABLES vi LIST OF FIGURES vii CHAPTER 1. INTRODUCTION 1 1.1 Research Background 1 1.1.1 Motivation and Background 1 1.1.2 Commercial Banking in Indonesia 3 1.1.3 Financial Inclusion and Profitability 5 1.2 Research Objectives 7 1.3 Research Flowchart 7 CHAPTER 2. LITERATURE REVIEW 8 2.1. Financial Inclusion 8 2.1.1 Definition 8 2.1.2. Measuring Financial Inclusion 10 2.1.2.1 Bank Account 12 2.1.2.2 Branch Office 13 2.1.2.3 ATM 13 2.1.2.4 Loans 13 2.1.2.5 Deposits 14 2.2 Profitability 14 2.2.1 Definition 14 2.2.2 Measures of Bank Profitability 15 2.2.2.1 Return on Assets (ROA) 15 2.2.2.2 Return On Equity (ROE) 16 2.3 The Impact of Financial Inclusion on Banks Profitability 17 CHAPTER 3. METHODOLOGY 20 3.1 Object of Research 20 3.1.1 Data Collection Method 20 3.2 Research Population and Sampling 20 3.3 Variables 21 3.3.1 Dependent Variables 21 3.3.2 Independent Variables 21 3.4 Data Analysis 22 3.4.1 Determine the Regression Model 22 3.4.2 Classical Assumption Test 23 3.4.3 Hypothesis Test 25 CHAPTER 4. RESULTS AND ANALYSIS 26 4.1 Descriptive Statistic 26 4.2. Classical Assumption Test 27 4.2.1 Normality Test 27 4.2.2 Multicollinearity Test 28 4.2.3 Autocorrelation Test 29 4.2.4 Heteroscedasticity 30 4.3 The Regression Results 30 4.3.1 Model 1 30 4.3.2 Model 2 32 4.3.3 Model 3 34 4.3.4 Model 4 36 4.4 Hypothesis Results 38 4.4.1 F Test 38 4.4.2 t Test 40 CHAPTER 5. CONCLUSION AND RECOMMENDATIONS 43 5.1 Research Conclusions 43 5.2 Research Limitations 44 5.3 Further Research Recommendations 45 REFERENCES 46 APPENDIX 50

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