IDEAS home Printed from https://ideas.repec.org/a/asi/ijosaa/v5y2020i1p42-53id90.html
   My bibliography  Save this article

Assessment of Bank Health Levels using RGEC Methods on National Private Public Banks

Author

Listed:
  • Pompong B Setiadi
  • Ratna Ursula S.

Abstract

This study aims to determine the level of health of National Private Commercial Banks by using standards set by Central Bank, namely by using the RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) method. The period used in this study began in 2016 until 2018. The object of this study was National Private Commercial Banks. This study uses data analysis with ratio analysis: (1) Risk Profile using the NPL ratio (Non-Performing Loan), IRR (Interest Rate Risk) and LDR (Loan to Deposit Ratio), (2) Good Corporate Governance (GCG), (3) Earnings using ROA (Return On Assets) and NIM ratios (Net Interest Margin), and (4) Capital using CAR (Capital Adequacy Ratio) financial ratio. The results of the study during the period 2016 to 2018 show that: (1) Risk Profile aspects of National Private Commercial Banks are very healthy condition with NPL ratios of 0.31%, 0.24%, and 0.19%, respectively. for IRR of 151.30%, 166.94% and 159.30%, and for LDR of 81.26%, 89.68% and 85.16%. (2) GCG aspects show 1.925, 1.925 and 1.85 with healthy criteria. (3) Earnings Aspect shows a healthy condition with ROA values of 2.10%, 2.01%, and 1.34% and NIM shows 4.9%, 5.2%, and 4.7%. (4) Capital aspects show very healthy conditions with CAR values of 9.69%, 11.59%, and 11.43%. (5) The RGEC aspect shows a Composite rating 1 (PK-1) with very healthy criteria.

Suggested Citation

  • Pompong B Setiadi & Ratna Ursula S., 2020. "Assessment of Bank Health Levels using RGEC Methods on National Private Public Banks," International Journal of Social and Administrative Sciences, Asian Economic and Social Society, vol. 5(1), pages 42-53.
    • Handle: RePEc:asi:ijosaa:v:5:y:2020:i:1:p:42-53:id:90
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5051/article/view/90/176
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:ijosaa:v:5:y:2020:i:1:p:42-53:id:90. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5051/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.