Assessment of State-Owned Bank Health Level Using the Rgec Method During the Covid-19 Pandemic

Abstract

In March of 2020, the Covid-19 virus reached Indonesia. Almost every industrial sector in Indonesia has been negatively affected including banking industry. This study aims to analyze how the health level of state-owned banks during the Covid-19 pandemic is using the RGEC method. The data used in this study is the annual report of state-owned bank for the 2020-2021 period. Sample in this study is state owned bank. The data analysis technique used in this research is by analyzing financial statements using the RGEC method. The result of this study shows that in 2020 and 2021 Bank Rakyat Indonesia (Persero) Tbk and Bank Mandiri (Persero) Tbk received a Very Healthy rating. Bank Tabungan Negara (Persero) received a Healthy rating in 2020 and 2021. Bank Negara Indonesia (Persero) Tbk received a Fairly Healthy rating in 2020, and in 2021 it received a Healthy rating.

The Assessment of State-Owned Bank Soundness Using RGEC Method Before and During Covid-19 Pandemic

“…Based on SE BI No. 13/2011, the weight or proportion to determine the composite rating is as follows: (Pertiwi, 2022). Data gathered from the websites of PT Bank Negara Indonesia (Persero) Tbk, PT Bank Tabungan Negara (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, and PT Bank Mandiri (Persero) Tbk for the 2019-2022 period.…”

“…According to Statistics Indonesia, Indonesia's economic growth (year on year) was 2.97 percent before the discovery of the Covid-19 virus in the first quarter of 2020. However, after the announcement in March 2020 that the first Covid-19 virus patient had been found, Indonesia's economic growth (year on year) contracted in the second, third, and fourth quarters of 2020, reaching -5.32 percent in the second quarter, -3.49 percent in the third quarter, and -2.17 percent in the last quarter (Pertiwi, 2022). The financial sector is one of those under attack as a result of the COVID-19 epidemic (Pertiwi, 2022).…”

“…However, after the announcement in March 2020 that the first Covid-19 virus patient had been found, Indonesia's economic growth (year on year) contracted in the second, third, and fourth quarters of 2020, reaching -5.32 percent in the second quarter, -3.49 percent in the third quarter, and -2.17 percent in the last quarter (Pertiwi, 2022). The financial sector is one of those under attack as a result of the COVID-19 epidemic (Pertiwi, 2022). Despite the effects of Covid-19, the banking sector's resilience is still strong.…”

“…This study uses LDR and NPL to represent risk profile. (Pertiwi, 2022), GCG is bank governance that applies the principles of transparency, accountability, responsibility, independence, and fairness . GCG are measured by selfassessment results (Kansil et al, 2020), Earning is a profitability factor used to measure the level of efficiency and profitability of Islamic Commercial Banks achieved by the bank concerned in a certain period .…”

Influence of Bank Health Level Using RGEC on Financial Distress of Banks in Indonesia

“…On the other hand, the emergence of the Covid-19 virus in March 2020 in Indonesia caused excessive concern. The economic sector, stock market, and business actors experienced stagnation, and the value of the rupiah weakened due to the Covid-19 virus (Pertiwi, 2022). This pandemic has disrupted the health of banks through deterioration in credit quality.…”