Bank Soundness Research Articles

PENERAPAN LAPORAN KEUANGAN DENGAN METODE RASIO CAMEL UNTUK MENILAI KINERJA KEUANGAN PADA BANK BTN YANG TERDAFTAR DI OJK

Banks play an important role in the economy of a country, therefore a healthy bank is needed. Assessment of the health of a bank can be measured using the CAMEL method based on regulations issued by Bank Indonesia No. 6/10/PBI/2004 because Bank Indonesia is the Central Bank whose regulations regulate the Bank Soundness Level. The purpose of this study was to determine the soundness of the State Savings Bank (BTN) in the 2017-2019 period, of which all four were State-Owned Enterprises (BUMN). The research method used is the CAMEL ratio method (CAR, KAP, NPM, ROA & BOPO, LDR). The results of the research for the last 3 years, after being measured by the applicable standard Bank Indonesia regulations, it was found that the average soundness level of Bank BTN was in the Pretty Healthy Predicate. State-owned banks should improve their financial performance to increase the predicate as healthy or very healthy banks because SOEs are banks that have the largest assets in Indonesia

Assessing Banking Soundness of Infobank15 Index' Categories: The Impact of RGEC on Stock Return

Assessment of the soundness of a bank using the RGEC method (Risk Profile, Good Corporate Governance, Earnings, and Capital) shows the financial performance of a banking company for a certain period. With good performance, investors will be interested in investing in the company. This study aims to determine the effect of bank soundness on bank stock returns listed on the Indonesia Stock Exchange in the Infobank 15 Index category for the 2016-2021 period. With a purposive sampling method, 10 banks were obtained from a total population of 15. This study uses panel data multiple linear regression analysis using Eviews 12 software. The regression model chosen is the Common Effect Model (CEM). The results showed that partially Non-Performing Loans (NPL) had a significant negative effect on stock returns. Return on Assets (ROA), Net Interest Margin (NIM), and Capital Adequacy Ratio (CAR) have a significant positive effect, and Loan to Deposit Ratio (LDR) and Good Corporate Governance (GCG) have no significant effect on stock returns.

Evaluation of non-interest banking and financial inclusion in Nigeria

businesses especially, Micro, Small and Medium Enterprises (MSME) intending to be efficient and effective in their operations as well as giving smoother access to financing when compared to the conventional banks. This paper therefore attempts to evaluate the prospects of a non-interest bank in Nigeria (Jaiz Bank Plc) in terms of financial inclusion, access to financial products and the trajectory of the bank itself in terms of performance and going concern tests. Using primary data analyses, our findings establish high level of acceptability of non-interest banking in Nigeria and secondary data analyses signal the financial soundness of Jaiz bank to give existing and prospective investors’ the needed comfort. We recommended that economic units in developing economies, private companies and individuals should tap into the vast bouquet of Islamic banking products offered on flexible terms in achieving their broad objectives

Analisis Pengaruh Tingkat Kesehatan Bank Dengan Metode CAMEL Terhadap Profitabilitas Pada Bank Konvensional Yang Tercatat Di BEI

This research is about the effect of Bank Soundness level which is measured using the CAMEL ratio with Profitability of Conventional Banks listed on the Indonesia Stock Exchange (IDX). In this study, the Capital is proxied by the CAR ratio, Earning is proxied by the NPL ratio, the Management is proxied by the NIM ratio, the Equity is proxied by the BOPO ratio, Liquidity is proxied by the LDR ratio, as a dependent variable, and profitability is proxied by ROA (Return on Assets) as an independent variable. The object of research in this study is Conventional Banks listed on the Indonesia Stock Exchange (IDX) in the period 2019-2021, with 30 Conventional Banks. The data of this research is from the annual financial reports of each bank. Which is processed by using the Multiple Linear Regression analysis. The result of research is that CAR affects profitability, this means that banks can manage capital to generate profits. NPL does not affect profitability because every year there are bad loans, so the NPL value is uncertain. NIM does not affect profitability because the bank can minimize bad loans with its productive assets. BOPO has a negative effect on profitability because with minimal costs it can generate maximum income. LDR has no effect on profitability because lending is not proportional to credit quality.

FINANCIAL PERFORMANCE ANALYSIS TO MEASURE THE LEVEL OF BANK HEALTH IN PT. PEOPLE'S BANK OF INDONESIA (PERSERO) Tbk

This study aims to determine or analyze financial performance to measure the soundness of banks at PT. Bank Rakyat Indonesia (Persero) Tbk in 2018 to 2020 to see if PT. Bank Rakyat Indonesia (Persero) Tbk in the predicate of healthy or unhealthy. Data collection techniques in this study is to use secondary data. The results of the research data that have been obtained are analyzed first with financial ratios, then the final CAMEL value is determined in each period by multiplying the credit value of each ratio with the CAMEL weight that has been set by Bank Indonesia. The ratios used include Capital (Capital) using the Capital Adequeency Ratio (CAR), Asset Quality (Asset Quality) using the productive asset quality ratio (KAP) The ratio of productive assets classified to the total earning assets, Management (Management) using the ratio of Net Profit Margin (NPM), Earning (Rentability) using the ratio of Gross Profit to Business Volume (Return on Assets / ROA) and the Ratio of Operating Costs to Operating Income (BOPO), and Liquidity (Liquidity) using the ratio Loan on Deposit Ratio (LDR) ). The results of this study show that the final value of CAMEL in 2018 was 92.2, in 2019 it was 92.5 and in 2020 it was 89.5. All of these results are in the range of 81% - 100% with a healthy predicate. Thus it can be concluded that the financial performance using the CAMLE method at PT. Bank Rakyat Indonesia (Persero) Tbk from 2018 to 2020 is in a healthy predicate.

Sentiment in Bank Examination Reports and Bank Outcomes

We investigate whether the bank examination process provides useful insight into bank future outcomes. We do this by conducting textual analysis on about 5,500 small to medium-sized commercial bank examination reports from 2004 to 2016. These confidential examination reports provide textual context to the components of supervisory ratings: capital adequacy, asset quality, management, earnings, and liquidity. Each component is given a categorical rating, and each bank is assigned an overall composite rating, which are used to determine the safety and soundness of banks. We find that, controlling for a variety of factors, including the ratings themselves, the sentiment supervisors express in describing most of the components predict relevant future bank outcomes. The sentiment conveyed in the asset quality, management, and earnings sections provides significant information in predicting future outcomes for problem loans, supervisory actions, and profitability, respectively, for all banks. Sentiment conveyed in the capital adequacy section appears to be predictive of future capital ratios for weak banks. These relationships suggest that bank supervisors play a meaningful role in the surveillance of the banking system.

Efisiensi Bank Umum Konvensional Sebelum dan Setelah Penerapan PSAK 71 dengan Metode Data Envelopment Analysis (DEA)

<em>The application of PSAK 71 banks establishes Allowance for Impairment Losses by making estimates of non-performing loans that will occur in the future. And the existence of government regulations on credit restructuring for customers affected by Covid-19 is a challenge for banks. In normal economic conditions (before the Covid-19 Pandemic), the application of PSAK 71 did not have a significant effect on the soundness of banks. Changes in the calculation of banking reserves on the basis of estimated losses can have the effect of declining assets. This study aims to analyze the difference in efficiency using the Data Envelopment Analysis (DEA) method after the application of PSAK 71. The population in this study is Conventional Commercial Banks listed on the Indonesia Stock Exchange (IDX) in 2019–2020. The sampling technique used was the purposive sampling method of the financial statements of 31 conventional commercial banks. The analytical technique used is the Wilcoxon test with the help of the SPSS 22 application program. The results show that there is no difference in the efficiency of Conventional Commercial Banks before and after the application of PSAK 71 based on the Data Envelopment Analysis (DEA) method.</em>

Analysis of the Health of Islamic Banking in Indonesia

This study aims to determine the soundness of Islamic Commercial Banks using the measurement method regulated in Bank Indonesia Regulation PBI No.13/1/PBI/2011, concerning Assessment of Bank Soundness Levels using the RGEC method. The assessment factors in the RGEC method are the risk profile factor (bank risk), the Good Corporate Governance (GCG) factor, the earnings factor (profitability) and the capital factor (capital). The object of this research isFinancial Statements of Bank Muamalat Indonesia and Bank BJB Syariah from 2015 to 2018. The analysis technique in this study is quantitative descriptive by calculating financial ratios using the RGEC method. The results of this study indicate that Bank Muamalat and Bank BJB Syariah, show the period from 2015 to 2018 in the fairly healthy category.

ARE ISLAMIC BANKS STILL SOUND AMIDST PANDEMIC?

The paper aims to check whether Islamic banks in Indonesia remain sound amid the Covid-19 Pandemic by comparing the soundness levels of Islamic commercial banks before and during the Covid-19 Pandemic. This research used a quantitative approach with the non-parametric Wilcoxon Signed-Rank Test to compare bank soundness before and during the Covid-19 Pandemic. The bank's resilience was measured using the Risk-Based Bank Rating (RBBR), e.g., Non-Performing Finance (NPF), Finance to Deposit Ratio (FDR), Capital Adequacy Ratio (CAR), and Net Operating Margin (NOM). The study exempted aspects of Good Corporate Governance since it is qualitative. The study used quarterly data in 2018-2019 (before the pandemic) and 2020-2021 (during the pandemic). The results showed a significant difference between CAR before and during the Covid-19 Pandemic. Meanwhile, NPF, FDR, ROA, and NOM showed no significant differences before and during the Covid-19 Pandemic. Based on the results, it can be concluded that the Covid-19 Pandemic generally does not affect the Islamic banks' soundness level, except for capital. It showed that the Islamic Bank proved to be resilient against crises. The study adds literature on the resilience of Islamic banks, particularly during the Covid-19 Pandemic, and validates the RBBR measurement to analyze the bank's soundness. In addition, the results of this study are also expected to be a consideration for policymakers to design the right policies for optimizing Islamic banks to thrive and support post-pandemic recovery.

Studi Perbandingan Tingkat Kesehatan Bank Antara Bank Syariah dan Bank Konvensional di Indonesia Selama Pandemi Covid-19

The COVID-19 pandemic that has occurred all over the world since the beginning of 2020 has not only had an impact on aspects of public health but also on almost all other aspects, including the economic aspect. Banking is an important sector for the economy of a country, including Indonesia. Indonesia is one of the countries that implement a dual banking system, namely Islamic banks and conventional banks. This study aims to analyze the differences in the soundness of Islamic banks and conventional banks during the COVID-19 pandemic in Indonesia based on the Risk-Based Bank Rating method which consists of 4 aspects studied, namely credit risk, liquidity risk, profitability, and capital. The soundness of a bank is important for banks because it shows the bank's ability to carry out its operational activities and fulfill all its obligations properly in accordance with applicable regulations. Hypothesis testing was carried out with the Mann-Whitney U test. The results of this study indicate that there is no significant difference between credit risk and capital aspects in Islamic banks and conventional banks during the COVID-19 pandemic in Indonesia. Other variables, namely liquidity risk, and profitability aspects show significant differences. In addition, all variables are still in the sound category.

ANALISIS TINGKAT KESEHATAN PERBANKAN MENGGUNAKAN METODE RISK-BASED PADA PT.BANK MUAMALAT INDONESIA

Banking is a financial institution that has great potential and enormous social value to grow and develop in carrying out its role as a source of financing for customers and the business sector, especially in facing the era of globalization in a country, especially Indonesia. Likewise, the soundness of a bank becomes a barometer of the ability to compete in the business world, because a bank is a company. Therefore, it is very important to maintain public trust in its performance. Based on Bank Indonesia regulation, bank soundness assessment will be very useful in implementing Good Corporate Governance and for dealing with future risks. The Risk-Based Bank Rating method is a policy issued by the government as a tool for assessing the soundness of a bank with the scope of the assessment covering the following factors: Risk profile, Good Corporate Governance , Profitability and Capital to produce a composite rating of bank soundness. The purpose of this study was to determine the soundness of the bank on the balance sheet items, profit and loss and cash flow as well as the financial performance of PT. Bank Muamalat Indonesia Tbk uses the Risk-Based Bank Rating method for 3 years. The results of the research generally show that PT Bank Muamalat Indonesia Tbk is in the composite rank 3 with the criteria of "Sufficiently Healthy". This indicates that the bank's condition is generally quite healthy and able to face significant negative effects from changes in business conditions and other external factors. 

Metode RGEC: Penilaian Tingkat Kesehatan Bank Sebelum dan Sesudah Merger Menjadi Bank Syariah Indonesia

This study aims to understand the soundness of Islamic banks in Indonesia by using the RGEC method as set out in Bank Indonesia Regulation PBI No. 13/l/PBI/20ll. The assessment factors in the RGEC method are Risk Profile, GCG (Good Corporate Governance), Capital (Capital) and Profitability (Earnings). The subjects of this research are all companies belonging to Islamic banking listed on the Indonesia Stock Exchange for the period 2020-2021. The sampling technique used a purposive experiment. The audit strategy used is descriptive quantitative by ensuring the monetary proportion using the RGEC strategy. The consequences of this study prove that a bank that has a very healthy level of health category for the 2020 period is Bank Syariah Mandiri, while in 2021 the health level that is in the healthy category is BSI (Bank Syariah Indonesia).

An Analysis of the Health of SOE Bank (Conventional) With the Methodcamels Listed on BEI

This study aims to test and analyze the soundness of state-owned banks using the Capital, Assets, Management, Earning and Liquidity methods and sensitivity to market risk listed on the Indonesia Stock Exchange for the 2018-2020 period. This type of research is descriptive qualitative. The population of this study is state-owned banks listed on the Indonesia Stock Exchange from 2018 to 2020. The sampling method is census. The results showed that the soundness of Bank Negara Indonesia (Persero), Tbk, the soundness of Bank Rakyat Indonesia (Persero), Tbk, Bank Mandiri (Persero), Tbk, State Savings Bank (Persero), Tbk calculated by the CAMELS method as a whole showed that Healthy predicate.

Analisis CAMEL untuk menilai tingkat kesehatan perusahaan perbankan yang terdaftar di Bursa Efek Indonesia

This study aims to determine the soundness of banking companies listed on the Indonesia Stock Exchange in 2016–2020. Assessment of bank health is very important because it forms trust in the banking world. Measuring the soundness of a bank can be done using the CAMEL approach, namely the analysis of the factors of capital (capital), asset quality (asset quality), management (management), earnings (profitability), liquidity (liquidity). This is an official measuring instrument that has been set by Bank Indonesia to calculate the health of banks in Indonesia. This study uses descriptive quantitative research methods to describe and analyze the data or numbers contained in the financial statements of general banking companies listed on the IDX, consisting of financial statements for the 2016–2020 period. The sample for this research was taken using the purposive sampling technique. The data analysis technique in this study uses SPSS 25 application software. The results of this study prove that the net profit margin (NPM) has an effect on the bank's soundness level. Meanwhile, the capital adequacy ratio (CAR), non-performing loan (NPL), return of assets (ROA), operating expenses to operating income (BOPO), and loan to deposit ratio (LDR) have no effect on bank soundness level.

Pengaruh rasio Net Intersest Margin (NIM), Loan To Deposit Ratio (LDR) dan Non Perfoming Loan (NPL) terhadap profitabilitas bank

The banking industry is an important sector in national development that functions as a financial intermediary. Banks as intermediary institutions must have good performance by maintaining and improving bank soundness. Thus, banks can more easily gain and maintain the trust of their customers (agent of trust), which is a bank's fundamental principle. This study aims to examine and analyze the effect of the ratio of NIM, LDR, and NPL on Bank Profitability. The population used in this study are banking companies listed on the Indonesia Stock Exchange in 2017-2021 with a final sample of 50. The sample method used in this study is multiple linear regression analysis using the IBM SPSS 22 program. The conclusion of this study is the simultaneous variable ratio NIM, LDR, and NPL have an influence on profitability. Meanwhile, partially the ratio of NIM and NPL has no effect on profitability, LDR has a positive effect on profitability.

ANALYSIS OF THE IMPACT OF THE EXTENSION OF CREDIT RESTRUCTURING ON BANKING SOUNDNESS

The purpose of this research is to analyze the impact of the extention credit restructuring on banking soundness. This research uses a quantitative approach, where the data used is secondary data. Secondary data is obtained by using documentation techniques. The population in this research were Regional Development Banks registered with the OJK until 2019 as many as 25 banks, all of which were used as samples or with saturated sampling technique. Hypothesis testing using independent sample t-test. The results of the research show that there are differences in the Loan to Deposit Ratio (LDR), Return On Assets (ROA) and Capital Adequacy Ratio (CAR) between before and after the extension of credit restructuring, while in Non Performing Loans (NPL), Net Interest Margin (NIM) and Good Corporate Governance (GCG) there is no difference between before and after the extension of credit restructuring. Overall assessment using a composite rating of bank soundness there is no difference between before and after the extension of credit restructuring, namely banking soundness is at composite rating 2 with a healthy predicate.

Interrelationship of deposits and borrowings with capital adequacy ratio empirical analysis of Indian banks

Banks garner deposits from public and the funds so raised are employed in lending and other operations to generate profits for the entity. As deposits constitute major share of bank funds and are raised from public at large, it is imperative that banks maintain adequate capital funds with capital adequacy ratio (CAR) to ensure security of deposits and confidence of population in banking structure. In addition to deposits, banks also employ borrowings to generate business funds. Capital in banks symbolizes the soundness and resilience of banks being a cushion against potential losses. When asset quality deteriorates due to environmental or business factors, capital comes to rescue to absorb losses. This saves the liability components of deposits and borrowing provided capital has enough absorption capacity measured in relation to riskiness of assets. This capacity is measured by Capital to Risk Weighted Assets ratio, a proportion of capital funds to risk adjusted assets. The objective of study is to examine the association which exists between CAR and how it is impacted by other two elements neighbouring it in the liability side of bank balance sheet viz. share of deposit in total liabilities and share of borrowing in total liabilities. Forty Indian banks have been included in study, twenty each from category of Government owned public banks and banks in the private sector. The study has shown that the percentage share of deposit has negative relationship with CAR and so depositors have to be wary of the availability of requisite capital in banks’ books to guarantee their safety. The share of borrowing has, however, opposite effect. The results are of significance for bank management.

RGEC Analysis in Assessing The Health of Bank Before and During The Covid-19 Pandemic

This study aims to assess the financial performance of state-owned banks consisting of Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Bank Savings State (BTN), Bank Mandiri. This research is a research using a quantitative approach. The object of this research is a state-owned bank listed on the Indonesia Stock Exchange for the 2018-2021 period. The data collection technique used is through the documentation method. The data source used is secondary from the annual financial statements obtained through the official website of the Indonesia Stock Exchange. The analysis technique uses the calculation of the RGEC method. The results of this study are expected to be able to show how the condition of the soundness level of state-owned banks listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period through the RGEC method is carried out. This analysis is also expected to be used as a reference for state-owned banks in assessing the soundness of banks. Aspects of the Risk Profile of state-owned banks during the 2018-2021 period are in a quite healthy with an average NPL value of 3.05%, 1.48%, 2.75%, and 3.75%, respectively. Then the average IRR values are 110.2%, 305.8%, 110.6%, and 112.8%, respectively. And lastly, the average LDR values were 89.71%, 82.49%, 105.11%, and 92.30%. The GCG aspects of state-owned banks during the 2018-2021 period are 2,2,1, and 2, so that in general they are said to be good. Aspects of BUMN bank earnings during 2018-2021 are in a healthy condition with average ROA values of 1.72%, 2.78%, 1.23%, and 0.72%, respectively. And the average NIM scores are 5.12%, 8.59%, 4.54%, and 3.86%, respectively. The capital aspect during 2018-2021 is in a healthy condition with the average CAR values of 18.69%, 22.41%, 20.46%, and 18.50%, respectively.

The relationship between the risk of failure and the global systemic importance of banks: A multicriteria evaluation approach

Systemic risks constitute a major issue for financial stability, given the interconnectedness of financial institutions around the world. In this context, the identification of Global Systemically Important Banks (G-SIBs) is crucial, as it enables supervisors to spot potential sources of systemic risks at the global level and take mitigation actions. To this end, the Financial Stability Board (FSB), in consultation with the Basel Committee on Banking Supervision (BCBS), has built a methodology to identify G-SIBs. In this research, we employ a sample of banks over the years 2013–2018 and extend the FSB/BCBS methodology through the application of an outranking multicriteria decision aiding approach, combined with extensive sensitivity analysis based on simulations with respect to the criteria weights and the sample composition. Different schemes for aggregating the simulation results are examined in terms of their robustness. Moreover, we examine the relationship between the multicriteria evaluation for the global systemic importance of banks and their risk of failure. The results reveal that systemic importance is positively associated with their probability of default, thus indicating that additional special measures should be designed and implemented for monitoring the soundness of banks that have a major role in the global financial system.

Analysis of Bank Health During The Covid19 Pandemic in Indonesia, Using the Rgec Method

This study aims to analyze the level of healthState-owned banks and private banks for the period 2018-2020 are viewed based on the overall RGEC (Risk profile, Good Corporate Governance (GCG), Earnings, Capital) aspects. This Type of Researchusing a qualitative approachtodataquantitative with research subjectsState-owned banks and private banks for the period 2018-2020. The data was obtained based on the document techniquementation. The data analysis technique used is the assessment of the soundness of the bankusing RGEC factors. Research resultfind that the soundness of the BankBUMN with (1) Risk Profile aspectusing the NPL ratio of "1.79%" gets the "Very Healthy" predicate, the LDR ratio of "118%" gets the "Unhealthy" predicate, (2) the GCG aspect with the composite "1" gets the "Very Good" predicate, (3 ) the Earnings aspect uses an ROA ratio of "2.51%" gets the "Very Healthy" predicate, the NIM ratio of "9%" gets the "Very Healthy" predicate, the BOPO ratio of "-131%" gets the "Very Healthy" predicate, ( 4) the “17%” CAR aspect gets the “Very Healthy” predicate. Meanwhile, at the Bank's soundness level,Private with (1) Risk Profile aspekusing the NPL ratio of "-5%" gets the "Very Healthy" predicate, the LDR ratio of "101%" gets the "Unhealthy" predicate, (2) the GCG aspect with a composite of "2" gets the "Good" predicate, (3) the Earnings using an ROA ratio of "2.25%" gets the "Very Healthy" predicate, the NIM ratio of "30%" gets the "Very Healthy" predicate, the BOPO ratio of "524%" gets the "Unhealthy" predicate, (4) aspects CAR "11%" received the title "Very Healthy". In general, the soundness of banks in the period 2018-2020State-owned bankreceived the "very healthy" predicate with a composite value of "103%", while private banks received the "fairly healthy" predicate with a composite score of "60%"