Banking Health Assessment of Commercial Banks in Indonesia Using RGEC Methods: A Comparative Study

Wiwiek Mardawiyah Daryanto,Tri Septia Rakhmawati,Agung Sri Utami

doi:10.32924/ijbs.v2i3.76

Abstract

    The study aims to analyze and compare the banking health assessment of commercial banks in Indonesia using RGEC methods. RGEC methods are included Risk Proile, Good Corporate Governance, Earnings, and Capital (RGEC). This study used descriptive with quantitative approach. The variables in this study includes Risk Proile using ratio of Non-Performing Loans (NPL) and Loan to Deposit Ratio (LDR), Good Corporate Governance (GCG) using Composite Rating GCG, Earnings using ratios of Return on Assets (ROA), Net Interest Margin (NIM), and Capital using Capital Adequacy Ratio (CAR). The data were collected from audited inancial report of two commercial banks in Indonesia which are PTBank UOB Indonesia and PTBank KEB Hana Indonesia for the period 2013 to 2017. The result showed that the inancial health level of PT Bank UOB Indonesia and PT Bank KEB Hana Indonesia was quite healthy. It indicates that the ability of the corporate's performance results had achieved very well.   

Highlights

As an entity which in its business activities considers public trust, banks with good management must be able to maintain the trust of customers who hold funds
The results of the banking health assessment for Bank Indonesia used as a means of establishing and implementing a bank bank supervision strategy by Bank Indonesia
RESEARCH METHODS RGEC Method The variables used in this study is the assessment of the bank in accordance with the method RGEC Bank Indonesia Circular Letter No 13/24/DPNP dated October 25, 2011

Summary

Introduction

As an entity which in its business activities considers public trust, banks with good management must be able to maintain the trust of customers who hold funds. For this reason, in maintaining customer trust, bank health must be maintained. The bank's health performance analysis is very important because the bank manages public funds which are entrusted to the bank. In the world of banking, the inal results of banking health analysis can be used as one of the means to determine business strategies in the future.

Objectives

Methods

Results

Conclusion