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

Daryanto, Wiwiek Mardawiyah; Utami, Agung Sri; Rakhmawati, Tri Septia

doi:10.32924/ijbs.v2i3.76

Cited by 6 publications

(7 citation statements)

References 1 publication

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“…Return on assets is a ratio that can be used in assessing the capability of a company to earn a profit (Daryanto et al, 2019). The return on assets value is obtained by comparing net income with the total assets owned by the company.…”

Section: Return On Assetsmentioning

confidence: 99%

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Analysis of the Effect of Financial Ratio on Financial Disress in the Hospital Sector in the List of Sharia Securities Affected by the Covid-19 Pandemic

2022

Jurnal Akuntansi, Manajemen Dan Ekonomi

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This study aims to examine the effect of the current ratio, debt to asset ratio, return on assets and tobin's q in influencing the incidence of financial distress in hotel sector companies affected by the COVID-19 pandemic. The data used in this study is secondary data obtained from the company's financial statements in 2020 -2021. The object of this research is the hotel sector company which is listed on the Indonesia Stock Exchange and is included in the category of the Sharia Securities List. This study uses a purposive sampling method in determining the research sample, then obtained 8 companies with a total of 56 financial reports from the first quarter of 2020 to the third quarter of 2021. The hypothesis testing used is panel data regression with a significance level of 5%. The results of this study are showing that return on assets have no effect on financial distress. Meanwhile, the current ratio, debt to asset ratio, and Tobin's q have an effect on financial distress.

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Section: Return On Assetsmentioning

confidence: 99%

“…This condition is because the high return on assets has an indication that the financial condition is in a healthy condition. Return on assets is a ratio used to assess the ability of a company to earn a profit (Daryanto et al, 2019).…”

Section: Influence Return On Assets Against Financial Distressmentioning

confidence: 99%

Analysis of the Effect of Financial Ratio on Financial Disress in the Hospital Sector in the List of Sharia Securities Affected by the Covid-19 Pandemic

2022

Jurnal Akuntansi, Manajemen Dan Ekonomi

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“…Earning is one common way of measuring a bank's soundness. The characteristics of banks in terms of income can be seen from the bank's performance in managing their profits, the stability of the components that support core income, and the ability of profits to increase capital and prospects for future profits (Daryanto et al, 2018). In this study, the profitability assessment used is the ratio of Return on Assets (ROA), Return on Equity (ROE), and Operating Expenses compared to Operating Income (BOPO).…”

Section: Earningmentioning

confidence: 99%

“…The capital adequacy ratio is a performance ratio that measures bank capital adequacy in supporting assets that contain or generate risk, such as credit (Daryanto et al, 2018).…”

Section: Capitalmentioning

confidence: 99%

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Analysis of Bank Soundness Before and After the Pandemic: The RGEC Approach

Arifin

2022

JERSS

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The Covid-19 pandemic has affected activities in the financial services industry, especially the banking sector, due to a slowdown in the real sector and the corporate sector, which has not yet been able to operate thoroughly. Therefore, amid a pandemic like this, it is increasingly necessary for banks to maintain and improve their level of soundness so that they can minimize possible risks and identify problems earlier. Concerning the soundness of the banks, banks are required to conduct periodic self-assessments and take corrective measures effectively by using an assessment of several factors, including risk profile, good corporate governance (GCG), earnings, and capital, abbreviated as RGEC. This study aims to determine whether there are statistical differences in banking health conditions before and after the Covid-19 pandemic. The case studies used in this study were 13 banking companies listed on the Kompas 100 Index. Using the t-test and Wilcoxon test, no statistical differences were found in the level of bank soundness before and after the pandemic for each RGEC indicator except the loan to deposit ratio (LDR), return on earnings (ROE), return on assets (ROA), and operating costs of operating income (BOPO). This finding shows the lower liquidity capacity of banks after the pandemic.

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Analysis of Financial Performance of Public Sector Banks in India: CAMEL

Singh

Milan

2020

Arthaniti: Journal of Economic Theory and Practice

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Public sector banks have been merged by the government in the last few years. This is the rationale behind conducting this study. The purpose of this article is to determine the factors affecting the performance of public sector banks in India and the interrelationship between bank-specific determinants and performance of public sector banks. In this article, we shall analyse the financial data of all the public sector commercial banks for a period spread across 11 years (2009–2019); Capital adequacy, Assets quality, Management efficiency, Earning, and Liquidity (CAMEL) has been used as a performance determinant; system generalised method of moments (GMM) analysis has been used to find the effect of determinants on the performance measurement of public sector banks; and CCA (canonical correlation analysis) has been used to find the interrelationship between the bank-specific determinants and the performance of public sector banks. The finding has important implications in terms of performance in the banking sector. Certain limitations of this study are: It is based on secondary data. The study only covers the financial aspects and not the non-financial aspects. It is found that the asset quality is negatively related with performance of public sector banks. Liquidity and inflation are inversely related to performance of public sector banks in India. Capital adequacy is positively related with banks’ performance, but inversely related with banks’ interest margin. GDP growth has a significant positive impact on banks’ performance, but inversely related with banks’ interest income. Inflation rate is inversely related with banks’ performance. Banking sector reforms are insignificantly related with banks’ performance.

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

Cited by 6 publications

References 1 publication

Analysis of the Effect of Financial Ratio on Financial Disress in the Hospital Sector in the List of Sharia Securities Affected by the Covid-19 Pandemic

Analysis of the Effect of Financial Ratio on Financial Disress in the Hospital Sector in the List of Sharia Securities Affected by the Covid-19 Pandemic

Analysis of Bank Soundness Before and After the Pandemic: The RGEC Approach

Analysis of Financial Performance of Public Sector Banks in India: CAMEL

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