Income Structure, Risk-Taking and Performance in Indonesia Bank Level Analysis

Abstract

Panel data analysis with random effects shows that there is a significant positive effect between diversification on the income structure on performance alone, not on risk. It is certainly understandable that because banks in Indonesia are relatively new to switching to non-interest income, banks are more careful in carrying out these activities, so the impact is on a excellent performance. Furthermore, in the non-interest income sub-category, net trading has a significant positive effect on performance.