GOVERNMENT OWNERSHIP, FOREIGN OWNERSHIP, AND BANK RISK TAKING: STUDY ANALYSIS ON THE FINANCIAL STATEMENTS OF CONVENTIONAL BANKS IN INDONESIA

In the globalization era, the products and activities of banks, as the primary banking implementers, are increasingly complex, as a result, the risks faced will also increase. The ownership structure heavily influences risk-taking. This study aims to determine the effects of government ownership and foreign ownership on bank risktaking in Indonesia. This study examined the ownership and bank risk-taking of 86 conventional commercial banks during the 2010-2014 period. Bank risk-taking was assessed through the g-ratio. The data included the financial statement, the Indonesian Banking Directory, and the website of each bank that were obtained from literature reviews and analyzed with multiple linear regression. The increasing percentage of government ownership and foreign ownership could increase bank risktaking as the g-ratio value would decrease. For every 1% of increase in ownership, the g-ratio value decreased by 13.858 on government ownership and 13.696 on foreign ownership. Government ownership and foreign ownership influence bank risktaking