Banking Industry Sustainable Growth Rate under Risk: Empirical Study of the Banking Industry in ASEAN Countries

Isnurhadi, Isnurhadi and Sulastri, Sulastri and Saftiana, Yulia and Jie, Ferry (2023) Banking Industry Sustainable Growth Rate under Risk: Empirical Study of the Banking Industry in ASEAN Countries. Sustainability, 15 (564). pp. 1-21. ISSN 2071-1050

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Abstract

This research examines how the banking industry maintains its sustainable growth rate. The sample consists of 328 commercial banks in the ASEAN area. A fixed effect model is employed to analyze the data. The study reveals several findings: (1) The countries with the most risk in the banking industry are Indonesia, Thailand, Philippines, Malaysia, and Singapore. (2) Operational risk has a negative effect on sustainable growth and a positive effect on actual growth. Asset utilization positively affects sustainable growth and positively affects actual growth. (3) Business risk has a positive effect on sustainable growth but a negative on actual growth. (4) Liquidity risk positivelyaffectsbothsustainablegrowthandactualgrowth. (5)Financialriskhasanegativeeffecton sustainable growth but not on actual growth. These findings contribute to the body of knowledge of financial management specifically interms of determining dividend and financing policy,operational activities and bridging conflicting objectives of managers and shareholders. Furthermore, these findings have implications for the practice, especially for shareholders, in how to maintain and set sustainable growth targets in conditions of various risks in banking. For banks within the framework of ASEAN integration, it is important to place SGR as a measure of sustainable finance.

Item Type:	Article
Uncontrolled Keywords:	bank industry; sustainable growth rate; risk
Subjects:	H Social Sciences > HG Finance > HG4001-4285 Finance management. Business finance. Corporation finance
Divisions:	01-Faculty of Economics > 61001-Management (S3)
Depositing User:	Prof Sulastri Sulastri
Date Deposited:	09 Jun 2023 10:35
Last Modified:	12 Jun 2023 14:16
URI:	http://repository.unsri.ac.id/id/eprint/108337

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