Analysis of the Effect of Interbank Market Interest Rates And Government Bond Maturity Yields On Net Interest Margin In ASEAN

Abstract

This study aims to determine the effect of interbank market interest rates and yield to maturity of government bonds on the net interest margin of banks in ASEAN. The interbank market interest rate is calculated by looking at the 3-month interbank rate, besides that the yield to maturity of government bonds which is calculated by looking at the interest rate on 10-year maturity bonds. In this study there are five control variables, namely Loan to Assets (LAR), Deposit to Liabillities (DTL), Non Interest to Interest Income, Log (Assets), Dummy Interest Rate. This research uses descriptive quantitative research with dynamic panel data regression models using the Generalized Method Of Moment (GMM) estimation method. There are 88 banking companies in ASEAN which are the population in this study. The population sample selection was carried out using purposive sampling method, so that 80 banking companies were obtained that met the criteria according to what the researchers had set. This study uses secondary data in the form of annual financial publication reports of each bank. The results obtained show that the interbank interest rates has a significant positive effect on the net interest margin. Furthermore, it is obtained that the variable yield to maturity of government bonds has a significant positive effect on the net interest margin.