Analysis of The Influence of Bank Health Level Using The Rgec Method (Risk Profile, Good Corporate Governance, Earnings, Capital) on Profitability in banking Companies Listed on Bei Period 2015-2019

Abstract

The purpose of this study was to determine the effect of soundness level using the RGEC (Risk Profile, GoodCorporate Governance, Earnings, and Capital) method on the profitability of banking companies listed on theIDX. The period used in this study is 5 (five) years, namely 2015 – 2019. This study uses descriptive researchwith a quantitative approach. The population in this study is 44 banking companies that have been and are stilllisted on the Indonesia Stock Exchange. The sampling technique used was purposive sampling and obtained asample of 12 companies. The data analysis technique used is multiple linear regression. The results showedthat partially the risk profile variable had no significant effect on profitability. Good corporate governance hasa significant negative effect on profitability. Earnings have a significant negative effect on profitability. Capitalhas a significant positive effect on profitability. Simultaneously, risk profile, good corporate governance,earnings, and capital have a significant effect on profitability. The ability of the variables risk profile, goodcorporate governance, earnings, and capital in explaining profitability is 90.6%