Post hoc test of Indonesia domestic systemically important banks performance at the ASEAN-5 level

Fongnawati Budhijono, Sugiarto Sugiarto, Muhammad Fuad


This study aims to examine whether the existence of strong banking interconnectivity in ASEAN brings about equality in bank performance, especially for banks that are classified as Domestic Systemically Important Banks (D-SIB). This study traces the performance of D-SIB banks operating in Indonesia at the ASEAN-5 level (Indonesia, Malaysia, Thailand, the Philippines, and Singapore) in 2007-2019. ROA is used to indicate bank performance, especially related to bank profitability, which is an important aspect for bank sustainability. The research data was obtained from the official websites of financial organizations and institutions such as World bank, IMF, OJK, Bloomberg terminal, and financial statements of banks in ASEAN-5 with a sample of 31 D-SIB banks. By using descriptive analysis and ANOVA as well as post hoc tests and scatter diagrams, the results of the study show that D-SIB banks operating in Indonesia have an ROA performance that dominates D-SIB banks which are classified as top 10 average ROA. It can be seen that D-SIB banks operating in Indonesia are not inferior to DSIB banks operating overseas and even proven to be able to outperform D-SIB banks operating overseas.


Domestic Systemically Important Banks; ASEAN-5; Return on Assets; Financial Institution

Full Text:



Ashraf, N. & Butt, Q. T. A. (2019). Examining the contributing factors of bank profitability in south Asian countries. International Journal of Finance & Banking Studies (2147-4486), 6(5), 01–12. Retrieved from

Bangko Sentral NG Pilipinas. (2020). Framework for dealing with domestic systemically important banks. Retrieved December 18, 2020, from

Bank for International Settlement. 2012. The Basel framework. Retrieved April 10, 2021, from

Bank Negara Malaysia. (2020). Domestic systemically important banks (D-SIB) framework. Retrieved from

Bank of Thailand. (2021). MPC knowledge. Retrieved from

Batten, J. A., & Xuun Vinh, V. (2017). Determinants of bank profitability evidence from Vietnam. SSRN Electronic Journal, September, 19–20. Retrieved from

Borio, C., Gambacorta, L., & Hofmann, B. (2017). The influence of monetary policy on bank profitability. International Finance, 20(1), 48–63. Retrieved from

Bricco, J., & Xu, T. (2019). Interconnectedness and contagion analysis: A practical framework. IMF Working Papers, 19(220). Retrieved from

Chae, S. S., Lee, J. Y., & Lee, C. L. (2020). Profitability on corporation banks in ASEAN - Focusing overseas characteristics. Asian Economic and Financial Review, 10(3), 352–366. Retrieved from aefr.2020.103.352.366

Claessens, S., Demirgüc, -Kunt, A., & Huiinga, H. (2001). How does foreign entry affect the domestic banking markets? Journal of Banking and Finance, 25, 891-911.

Corbacho, A., & Peiris, S. J. (2018). The ASEAN way: Sustaining growth and stability. In Washington, DC: International Monetary Fund.

de Leon, M. V. (2020). The impact of credit risk and macroeconomic factors on profitability: The case of the ASEAN banks. Banks and Bank Systems, 15(1), 21–29.

Demirgüç-Kunt, A., & Detragiache, E. (1998). The Determinants of banking crises in developing and developed countries. IMF Staff Papers, 45(1), 81–109. Retrieved from

Diamond D. (1984) "Financial intermediation and delegated monitoring", Review of Economic Studies 51, pp. 393-414

Diamond, D., & Rajan, R. (2001). Liquidity risk, liquidity creation, and financial fragility: A Theory of banking. Journal of Political Economy, 109(2), 287-327. doi:10.1086/319552

Dietrich, A., & Wanzenried, G. (2014). The determinants of commercial banking profitability in low-,middle-, and high-income countries. Quarterly Review of Economics and Finance, 54(3), 337–354. Retrieved from

Fama E.F. (1980) “Fama banking in the theory of finance”, Journal of Monetary Economics, 6 (1), pp. 39-57.

Franklin, A. (1994). On the theory of financial intermediation. De Economist, 142(2), 133–149. Retrieved from

Gurley, J.G., E.S. Shaw (1960) "Money in a theory of finance", Brookings

Jonathan Batten & Xuan Vinh Vo. (2019). Determinants of bank profitability—Evidence from Vietnam Retrieved from

Kohlscheen, Murcia, and Contreras. (2018). Determinants of bank profitability in emerging Markets. Retrieved from

Le, T. D., & Ngo, T. (2020). The determinants of bank profitability: A cross-country analysis. Central Bank Review, 20(2), 65–73. Retrieved from

Leland H., & D. Pyle (1977) "Informational Asymmetries, Financial Structure and Financial Intermediation", Journal of Finance, Vol. 32, pp. 371 – 387

Lohano, K., & Kashif, M. (2019). Factors affecting the profitability of banks in developing countries. NUML International Journal of Business & Management ISSN, 14(2), 2410–5392.

Manlagnit, Maria Chelo V. (2011). The economic effect of foreign bank presence: evidence from the Philippines Journal of International Money and Finance 20 1180 - 1194.

Monetary Authority of Singapore. (2015). MAS publishes framework for domestic systemically important banks in Singapore. Retrieved from

Nguyen, T. H. (2020). Impact of bank capital adequacy on bank profitability under Basel II Accord: Evidence from Vietnam. Journal of Economic Development, 45(1), 31–46.

Otoritas Jasa Keuangan. (2018). Penetapan Bank Sistemik dan Capital Surcharge. Retrieved from

Otoritas Jasa Keuangan. (2019a). Kegiatan usaha bank umum. Retrieved from

Otoritas Jasa Keuangan. (2019b). Statistik perbankan Indonesia Juli 2019. Retrieved from

Pardo, R. P., & Rana, P. B. (2015). Complementarity between regional and global financial governance institutions: The case of ASEAN+3 and the global financial safety net. Global Governance, 21(3), 413–433. Retrieved from

Pupik Damayanti dan Dhian Andanarini. (2018). Analisis pengaruh ukuran (size), capital adequacy ratio (car), pertumbuhan deposit, loan to deposit rasio (ldr), terhadap profitabilitas perbankan go public di Indonesia tahun 2005–2009. Jurnal Ilmu Manajemen Dan Akuntansi Terapan (JIMAT), 3(2), 45-54.

Rose P., & Hudgins S. (2013). Bank management & financial services. New York, NY:McGraw-Hill. Retrieved from https://bookshelf.vital

Sufian, F., & Chong, R. R. (2008). Determinants of bank profitability in a developing economy: Empirical evidence from the Philippines. Asian Academy of Management Journal of Accounting and Finance, 10(3), 207–217.

Sufian, F., & Habibullah, M. S. (2009). The Impact of Asian financial crisis on bank performance : Empirical evidence from Thailand and Malaysia. Centre for Socio-Economic Dynamics and Cooperation of the University of Bergamo, 33(2), 153–181.

Sugiarto & Nursiana, Adinoto, (2016). Determinants identification of public banks stock prices in Indonesia based on fundamental analysis. IJABER, Vol 14, No 6, (2016) 4705-4712

Undang-Undang Republik Indonesia Nomor 10 tahun 1998. Dokumen Perusahaan. 10 November 1998. Lembaran Negara Republik Indonesia Tahun 1998 Nomor 182. Jakarta

Vejzagic, M., & Zarafat, H. (2014). An Analysis of macroeconomic determinants of commercial banks profitability in Malaysia For the Period Asian Economic and Financial Review. Asian Economic and Financial Review, 4(41), 41–57. Retrieved from

Warren, L. S. (1959). Financial intermediaries and monetary controls. Oxford Journals, 73(4), 533–553. Retrieved from

Williamson, O. (1981). The Economics of organization: The Transaction Cost Approach. American Journal of Sociology, 87(3), 548-577. Retrieved from

Yüksel, S.; Mukhtarov, S.; Mammadov, E.; Özsarı, M. (2018). Determinants of profitability in the banking sector: An analysis of post-Soviet Countries. Retrieved from




  • There are currently no refbacks.

Copyright (c) 2021 fongnawati budhijono, sugiarto sugiarto, Muhammad Fuad

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

Editorial Office:

President University Master of Technology Management Program
Jalan Ki Hajar Dewantara Mekarmukti
Cikarang Utara, Bekasi, Jawa Barat

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