Factors Influencing the Increase in Fee-Based Income to Maintain the Stability of Banks Listed on the Indonesia Stock Exchange

Abstract

This study aims to analyze the effects of equity, credit growth, third-party cash deposits, and Return on Assets (ROA) on cost-based income at banking companies listed on the Indonesia Stock Exchange during the 2000–2016 period. The method used is panel data regression with a least squares model using Eviews 9 software. The data analyzed are secondary data obtained from the annual reports of banking companies. The results show that equity and ROA have a significant effect on cost-based income, while credit growth and third-party cash deposits do not have a significant effect. The limitations of this study lie in the limited scope of variables, which are restricted to equity, credit growth, third-party cash deposits, and ROA, as well as the observation period, which is limited to the years 2000 through 2016.