The Cyclical Behavior of Price-cost Margin in Indonesian banking: Does Ownership matter?
Abstract
The purpose of this study is to examine the effect of the business cycle on price-cost margins in Indonesian banking. The research method used is the System Generalized Method Moment (SYS-GMM) to analyze 94 conventional banks in Indonesia for the period 2011-2020. The results of the study indicate that credit is countercyclical to the price-cost margin. This result indicates the financial accelerator mechanism in Indonesian banking. In the control variable, liquidity and market concentration have a significant effect on price cost-margin.
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DOI: https://doi.org/10.30872/miceb.v6i1.14241
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