Determinants of Bank’s Resilience in Emerging Market: SEM PLS Approach

Arif Widodo Nugroho, Aisyah Pia Asrunputri, Sumardi Sumardi


The banking industry is one of the industries that plays a role in global economic conditions, thus the resilience of the Bank is very important. The purpose of this study was to determine the effect of Bank Competition, Good Corporate Governance (GCG), and Bank Performance on Bank Resilience in Emerging Market. This research is a quantitative study by taking bank data listed on the Indonesia Stock Exchange during 2015-2019. This study used panel data and applied regression analysis with the Structural Equation Modeling (SEM) approach. The findings state that only the Bank Performance was the only variable that is significant for Bank Resilience, while the other two variables were not significant.


bank resilience; bank competition; good corporate governance; bank performance; emerging market

Full Text:



Amidu, M., & Wolfe, S. (2013). Does bank competition and diversification lead to greater stability? Evidence from emerging markets. Review of Development Finance, 3(3), 152–166.

Arif, S. (2019). Influence of Leadership, Organizational Culture, Work Motivation, and Job Satisfaction of Performance Principles of Senior High School in Medan City. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). P. 239-254.

Bank Indonesia. (2018). Financial Stability Review 2018.

Basel Committee on Banking Supervision. (2009). Strengthening the Resilience of the Banking Sector. In Bank for International Settlements.

Basel Committe on Banking Supervision. (2011). Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems. In BCBS Report No. 189, Bank for International Settlement. Retrieved from

Baselga-Pascual, L., del Orden-Olasagasti, O., & Trujillo-Ponce, A. (2018). Toward a more resilient financial system: Should banks be diversified? Sustainability (Switzerland), 10(6), 1–16.

Berger, A. N., & Bouwman, C. H. S. (2013). How does capital affect bank performance during financial crises? Journal of Financial Economics, 109(1), 146–176.

Chen, W., Hamori, S., & Kinkyo, T. (2016). Banking sector resilience to financial spillovers. Applied Economics Letters, 24(6), 422–426.

Claessens, S., & Laeven, L. (2013). What Drives Bank Competition? Some International Evidence. Journal of Money, Credit and Banking, 36(3), 563–583.

Ghozali, I. & Latah, H. (2015). Partial Least Squares: Konsep, Teknik, dan Aplikasi Menggunakan Program SmartPLS 3.0 edisi ke-2. Semarang: Badan Penerbit – UNDIP.

Goetz, M. R. (2018). Competition and bank stability. Journal of Financial Intermediation, 35, 57–69.

Griffin, D., & Basak, S. (2019). Deutsche Bank, BNP Face Reality of $168 Billion Hedge-Fund Deal. Retrieved from

Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modelling (PLS-SEM) Second Edition. Los Angeles: SAGE.

Hashem, S. Q., & Abdeljawad, I. (2018). Islamic Banks’ Resilience to Systemic Risks: Myth or Reality-Evidence from Bangladesh. Management of Islamic Finance: Principle, Practice, and Performance, 19, 37–68.

Herdjiono, I., & Mega Sari, I. (2017). The Effect of Corporate Governance on the Performance of a Company. Some Empirical Findings from Indonesia. Journal of Management and Business Administration. Central Europe, 25(1), 33–52.

IMF. (1998). The Asian Crisis: Causes and Cures. Retrieved from Finance & Development website:

Iramani, R. R., Mongid, A., & Muazaroh, M. (2018). Positive contribution of the good corporate governance rating to stability and performance: evidence from Indonesia. Problems and Perspectives in Management, 16(2), 1–11.

Jiménez, G., Lopez, J. A., & Saurina, J. (2013). How does competition affect bank risk- taking? Journal of Financial Stability, 9(2), 185–195.

Köhler, M. (2012). Which banks are more risky? The impact of loan growth and business model on bank risk-taking. In Deutsche Bundesbank No. 33 (Vol. 96).

Magdalena, S., Suhatman, R. (2020). The Effect of Government Expenditures, Domestic Invesment, Foreign Invesment to the Economic Growth of Primary Sector in Central Kalimantan. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). Volume 3, No 3, Page: 1692-1703.

Mckinsey. (2017). The new dynamics of financial globalization. Retrieved from insights/the-new-dynamics-of-financial-globalization.

Mergaerts, F., & Vennet, R. Vander. (2016). Business models and bank performance. Journal of Financial Stability, 22(C), 55–75.

Mollah, S., Hassan, M. K., Al Farooque, O., & Mobarek, A. (2017). The governance, risk-taking, and performance of Islamic banks. Journal of Financial Services Research, 51(2), 195–219.

Niati, D. R., Siregar, Z. M. E., & Prayoga, Y. (2021). The Effect of Training on Work Performance and Career Development: The Role of Motivation as Intervening Variable. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(2), 2385–2393.

Purba, K., Sudibjo, K. (2020). The Effects Analysis of Transformational Leadership, Work Motivation and Compensation on Employee Performance in PT. Sago Nauli. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Volume 3, No 3, Page: 1606-1617

Shah, M. M., et al. (2020). The Development Impact of PT. Medco E & P Malaka on Economic Aspects in East Aceh Regency. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). Volume 3, No 1, Page: 276-286

Werdhiastutie, A. et al. (2020). Achievement Motivation as Antecedents of Quality Improvement of Organizational Human Resources. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Volume 3, No 2, Page: 747-752.


Article Metrics

Abstract view : 91 times
PDF - 45 times


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.