Abstract

The purpose of this study is to analyze the financial performance of commercial banks listed on the Indonesia Stock Exchange. For the short term, the results of this study are expected to determine the financial performance of commercial banks listed on the Indonesia Stock Exchange during the observation period. Financial performance is one of the most important elements on which investors base their decisions. The results of this study are not only useful for investors, but also useful for the general public who want to use banking services, in terms of choosing a healthy bank to save the funds they have. For the long term, the results of this study are expected to contribute to the field of accounting, especially financial accounting courses and financial statement analysis. The results of this study can be used as material for compiling case studies in both courses and used in the learning process. The research objective can be achieved by collecting secondary data in the form of a company's financial statements that are the subject of research, tabulated data, and then analyzed using the time series method and trend analysis. Keywords : Banking, Ratio, Financial Performance DOI : 10.7176/EJBM/12-3-17 Publication date: January 31 st 2020

Highlights

  • Background of StudyIn modern society, employees must have analytical, systematic and unusual thinking

  • Commercial banks usually focus on managing withdrawals and receiving deposits and providing short-term loans to individuals and small businesses

  • The summary of data processing results shows that the most decline in Return on Assets (ROA) occurred in 2017, namely 23 banks or 62.16% of the total banks studied

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Summary

Introduction

Background of StudyIn modern society, employees must have analytical, systematic and unusual thinking. Commercial banks usually focus on managing withdrawals and receiving deposits and providing short-term loans to individuals and small businesses. Consumers mainly use these banks for checking accounts and basic savings, certificates of deposit, and home mortgages. A country's economic development depends on a number of factors such as industrial growth and development, agricultural modernization, expansion of domestic and foreign trade, political stability, its dependence on the largest level in the banking sector is undeniable and / or banks play a key role in increasing economic efficiency by channeling funds from surplus unit resources to those who have limited access and / or who need it. A country's economic development depends on a number of factors such as industrial growth and development, agricultural modernization, expansion of domestic and foreign trade, political stability, its dependence on the largest level in the banking sector is undeniable and / or banks play a key role in increasing economic efficiency by channeling funds from surplus unit resources to those who have limited access and / or who need it. Misra and Asphalt (2013)

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