Cointegration of Banking Performance on World Oil Prices
Cointegration of Banking Performance on World Oil Prices
Author(s): Jisman M. Lubis, MOELJADI MOELJADI, Kusuma RATNAWATI, Atim DjazuliSubject(s): Supranational / Global Economy, Financial Markets, Socio-Economic Research
Published by: Transnational Press London
Keywords: Bank Performance; RoA; RoE; PBV; LDR and OIL Price; Cointegration;
Summary/Abstract: This study investigates the cointegration between banking performance and global oil prices from 2014 to 2021. Using the Augmented DickeyFuller (ADF) test for cointegration analysis, the research examines the relationships between global crude oil prices and banking performance indicators such as Return on Assets (ROA), Return on Equity (ROE), Price to Book Value (PBV), and Loan to Deposit Ratio (LDR). The findings reveal significant cointegration between global crude oil prices and the banking performance variables. Notably, an inverse correlation was observed in 2021, indicating a deviation from the established pattern.
Journal: Journal of Ecohumanism
- Issue Year: 3/2024
- Issue No: 4
- Page Range: 1133-1142
- Page Count: 10
- Language: English
