Analisis Pengaruh Diversifikasi Pendapatan dan Faktor Spesifik Bank terhadap Stabilitas dan Leverage Bank dengan Interaksi Konsentrasi Likuiditas

Abstract

In performing its role as a financial intermediation institution, the bank is constantly dealing with credit and liquidity risks. These two risks have a direct impact on the stability of the bank and ultimately affect the capital characteristics of the bank. Failure to mitigate these risks will set the bank in a default state. From a theoretical perspective, the issue of diversification is one way to minimize risk. Considering the high risks arising from interest income, banks need to diversify their income into non-interest income. Bank liquidity problems can trigger insolvency risk. Thus, banks need a liquidity concept and measure that provides a comprehensive picture of bank liquidity conditions. The main objective of this study is to provide a new perspective on resource-based theory by proving that the implementation of income diversification strategies in banks can provide a competitive advantage, as well as proposing new concepts and measurements of bank asset liquidity. This study used data from 108 banks in the ASEAN region for the period 2010-2019, so the total observations were 1080 data. The statistical tests conducted are regression of path analysis and moderate regression analysis (MRA) with the panel corrected standard error (PCSE) method. The test results show that implementing the income diversification strategy in banks in the ASEAN region can increase bank stability and leverage as a source of profit creation for banks. Thus, income diversification can be a resource that provides a competitive advantage for banks. The interaction of liquidity concentration of bank assets did not show a significant impact on the relationship between income diversification and bank stability. Instead, it strengthened the connection between bank stability and bank leverage. This research contributes theoretically by providing a new perspective on resource-based theory by proving the role of diversification as a competitive advantage. Then this research contributes by proposing a measure of concentrated liquidity and submitting a bank category based on the concentration of liquidity of its assets. The results of this study are expected to contribute to practitioners, researchers, investors and regulators in the banking sector to create sound banking environments.