FORECASTING ANALYSIS OF FINANCIAL RATIO ISLAMIC BANKING IN INDONESIA USING SUPPORT VECTOR REGRESSION

• Main Author: FITRIANI (NIM : 10214066), DINI
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26694
• Institution: Institut Teknologi Bandung

The economy development of a country is majorly determined by the condition of the banking sector. Because of that, the healty banking rating is very important for economic stability in a country. A good measure of a bank's health can not be known through financial report. Indicator in financial report is to describe a bank's health condition that is profitability ratio and solvency ratio. Health level forecasting is very important for investors, the results of these forcasting can help in returning the decision to invest. Support vector regression method using to forecast the value of profitability ratio and solvency ratio, in that method there are three parameters that <br /> <br /> <br /> <br /> <br /> <br /> <br /> influence the accuracy of prediction result that is type of kernel function, parameter &#949; -insensitive loss functions and value of the constant C. The kernel function type is used to determine the shape of the prediction pattern, the parameter &#949; -insensitive loss functions is used predefined constant that controls the noise tolerance and C constant detetermines penalties to larger than &#949; are tolerated. Then, wavelet as data preprocessing to curate noise and compression data. The accuracy indicators used are MAPE (Mean absolute percentage error), MAE (Mean Absolute Error), MSE (Mean Squared Error ) and RMSE (Root Mean Square Error). The data used in this final project are financial ratio of ROE (Return On Equity), OER (Operational Efficiency Ratio) and CAR (Capital Adequacy Ratio) of Islamic Banking in Indonesia from March 2010 until September 2017.