The Effect of GTPF on Banking Financial Performance through Asset Growth as a Mediator

Abstract

The objetive of this study is to investigate the impact of the GTPF on banking financial performance in Indonesia, over the long and short term, through the company’s annual report. Descriptive-quantitative used as methodology which emphasize on quality. Research population was those banks which had CGPI arbitration from 2013 to 2022 with saturated sample used for sampling method that later analyzed through PLS-SEM. According to the conclusions of this study, the impact of GTPF on the financial performance of the bank is not considerable, but the indirect effect through company asset growth had favorable and strong affect. These findings suggest that the GTPF can boost bank financial performance if accompanied with company asset growth. This happens due to the fact that when the bank cannot afford to optimize the credit that is provided to the community, the funds are used to add fixed assets in order to strengthen the market, which will ultimately be able to enhance the bank’s financial performance.