Measuring the Financial Performance of Indonesian Banking Industry Using Risk-Based Bank Rating

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Sjahrifa, Cut and Daryanto, Wiwiek Mardawiyah and Ananggadipa, Vanya Kanyaka (2018) Measuring the Financial Performance of Indonesian Banking Industry Using Risk-Based Bank Rating. International Journal of Business Studies, 2 (1). pp. 33-41. ISSN 2580-0132

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Abstract

A bank has an important role in every country including Indonesia. Bank is aimed in maintaining economic growth and national financial stability. This study is to measure and analyze the financial performance between Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Mandiri, and Bank Central Asia (BCA) against the national performance condition from under Bank Indonesia’s regulation No. 13/1/PBI/2011 about Banks Financial Health Assessment. The data were collected from annual report each company for the period 2012 – 2016. Furthermore, this study measure and analyze their level of financial health performance with Risk-based Bank Rating (RBBR) approach. RBBR examines Non-Performing Loan Ratio (NPL), Loan to Deposit Ratio (LDR), Current Account and Saving Account Ratio (CASA), Return on Asset (ROA), and Capital Adequacy Ratio (CAR). The result shows that those banks have a good financial performance which can be categorized in ideal and very healthy condition. The finding results will be useful for students to deepen understanding about financial ratio and for bankers to analyze and make a strategy to improve the performance. Keywords: Financial Performance, Risk-based Bank Rating, Banks Financial Assessment, Indonesian Banking Industry

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions: Research And Community Empowerment > Journals
Depositing User: Rizky Amalia
Date Deposited: 22 Jan 2020 05:59
Last Modified: 22 Dec 2021 06:52
URI: http://repository.ipmi.ac.id/id/eprint/539

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