ANALYSIS OF BANK HEALTH LEVEL USING RISK-BASED BANK RATING METHOD (RBBR)

• Main Author: Marida Hutasoit (NIM 19014026), Dwita
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/21844
• Institution: Institut Teknologi Bandung

The poor condition of banking health is caused by many diverse factors. The occurrence of cases of bad loans in large numbers and continuously negative impact on national economic growth. The impact for the banks themselves is very disadvantageous because of the increasingly limited. The confidence of customers against banks is low then the bank's health assessment is used to restore public confidence in order to keep the public money in the bank The benefits of this research for customers and investors is a consideration for customers and investors in decision making in choosing a bank. By choosing a healthy bank is expected to avoid the risks often faced by the bankThe objective of this research was to find out: (1) the healthy level <br /> <br /> of bank in term of risk profile aspects in 2011-2015, (2) the healthy level of bank in term of good corporate governance aspects in 2011-2015 (3) the healthy level of bank in term of earnings aspects in 2011-2015, (4) the healthy level of bank in term of capital aspects in 2011-2015, and (5) the healthy level of bank in term of risk profile, good corporate governance, earnings, and capital aspects in 2011-2015. The data were collected through documentation. RBBR approach in this study using financial ratios consisting of four factors. Risk profile factor through the NPL ratio and LDR, Good Corporate Governance Factor, Earning factor through ROA ratio and NIM, and Capital factor through CAR. The population in this study are all companies that are in Indonesia Stock Exchange during 2011-2015. Sampling using purposive sampling method is sample selection based on certain type, with the existing method of the sample of 5 appropriate companies, namely Bank Mandiri, Bank Negara Indonesia, Bank Tabungan Negara, Bank Rakyat Indonesia, and Bank OCBC NISP. The result of this research showed that in the periods of 2011-2015, all of the researched banks got predicate as health enough. Risk Profile factor showed bank’s NPL were under 5% and most of bank’s LDR got predicate as fairly healthy. Good Corporate Governance factor showed banks got predicate very good. Earning factor showed bank’s ROA were over 1,5% and banks’ NIM were over 3%. Capital factor showed banks’ CAR were over 12% so that it could fill 8% the minimum of capital availability. <br />