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Abstract

Purpose – This study aims to measure the influence of monetary policy and institutional quality on bank profitability in ASEAN.
Methods – This study uses data from 98 banks spread across 9 ASEAN countries during the 2011-2019. This period includes an important phase in the history of modern banking and monetary policy. The analysis method used is the System Generalized Method of Moments (GMM) two-step model.
Findings – The results of the study show that quantity-based monetary policy has a positive impact on bank profitability. In contrast, price-based monetary policy has a negative but not significant impact. Another interesting finding is that institutional quality has a significant negative effect on bank profitability. This indicates an institutional efficiency trade-off in ASEAN countries. The control variable from the bank's internal conditions showed that NIM and bank size of the bank had a significant positive effect, whereas BOPO had a significant negative effect on profitability. On the other hand, macroeconomic variables show that inflation has a negative effect, but GDP growth has not contributed significantly to profitability in ASEAN banks
Implications – This research has implications for two aspects: strengthening the transmission of monetary policy through liquidity channels and the importance of maintaining institutional quality reforms in ASEAN countries.
Originality – This study provides an empirical contribution by revealing that monetary policy and institutional quality contribute to determining bank profitability.


Abstrak
Tujuan – Studi ini bertujuan untuk mengukur pengaruh kebijakan moneter dan kualitas institusional terhadap profitabilitas bank di ASEAN.
Metode – Studi ini menggunakan data dari 98 bank yang tersebar di 9 negara ASEAN selama periode 2011-2019. Periode ini mencakup fase penting dalam sejarah perbankan modern dan kebijakan moneter. Metode analisis yang digunakan adalah model dua langkah Generalized Method of Moments (GMM).
Temuan – Hasil studi menunjukkan bahwa kebijakan moneter berbasis kuantitas berdampak positif terhadap profitabilitas bank. Sebaliknya, kebijakan moneter berbasis harga memiliki dampak negatif tetapi tidak signifikan. Temuan menarik lainnya adalah bahwa kualitas institusional memiliki pengaruh negatif yang signifikan terhadap profitabilitas bank. Hal ini menunjukkan adanya trade-off efisiensi institusional di negara-negara ASEAN. Variabel kontrol dari kondisi internal bank menunjukkan bahwa NIM dan ukuran bank memiliki pengaruh positif yang signifikan, sedangkan BOPO memiliki pengaruh negatif yang signifikan terhadap profitabilitas. Di sisi lain, variabel makroekonomi menunjukkan bahwa inflasi memiliki efek negatif, tetapi pertumbuhan PDB belum memberikan kontribusi signifikan terhadap profitabilitas bank-bank ASEAN.
Implikasi – Penelitian ini memiliki implikasi untuk dua aspek: memperkuat transmisi kebijakan moneter melalui saluran likuiditas dan pentingnya mempertahankan reformasi kualitas kelembagaan di negara-negara
Orisinalitas – Studi ini memberikan kontribusi empiris dengan mengungkapkan bahwa kebijakan moneter dan kualitas kelembagaan berkontribusi dalam menentukan profitabilitas bank

Keywords

Monetary policy Institutional quality Generalized method of moments (GMM) Bank profitability

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Copyright (c) 2026 Rindang Nuri Isnaini Nugrohowati, Jannahar Saddam Ash Shidiqie

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Nugrohowati, R. N. I., & Ash Shidiqie, J. S. (2026). Monetary policy, institutional quality, and bank profitability in ASEAN: A pre-pandemic structural analysis. Jurnal Kebijakan Ekonomi Dan Keuangan, 5(1), 172–190. https://doi.org/10.20885/JKEK.vol5.iss1.art17
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