ANALYZING COMMERCIAL BANK IN INDONESIA BY USING CAMEL METHOD, CASE STUDY OF: PT Bank Mandiri (Persero), Tbk (BMRI) FOR PERIODS OF 2007-2016

• Main Author: HELENA OBRINA HUTABARAT (NIM 29115393), VANESSA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31438
• Institution: Institut Teknologi Bandung

Assessment of bank’s soundness is fundamental since even a little macro economic condition can influence customers trust on banks. For this research, the case study is Bank Mandiri. Bank Mandiri expected by president of Indonesia to expanding their business in Southeast Asia, whereas they have some issues such as the rising of their non-performing loan and the decline of their profit. Bank Mandiri also have issues in their credit quality. With all these issues, Bank Mandiri have to convince foreign market that they have a good trend of bank soundness and can be trusted. <br /> <br /> The purpose of this research is to assess bank soundness of Bank Mandiri from 2007-2016 and to find the priority ratios. In this research, CAMEL method that stands for Capital (C) represented by Capital Adequacy Ratio, Assets Quality (A) represented by Non-Performing Loan Ratio, Management (M) represented by Operating Expense Ratio, Earning (E) represented by Return on Asset Ratio, and liquidity (L) represented by Loan to Deposit Ratio is used for determining Bank Mandiri bank soundness for the last ten years. As for determine ratios that have strongest correlation, correlation statistic method will be used. Data used in this assessment are secondary data from Indonesia Stock Exhange. Those data are financial report and annual report from Bank Mandiri since 2007 until 2016. <br /> <br /> The results showed that Bank Mandiri has healthy status based on CAMEL method. Other than that, results from this research also showed that ratios that be the priority as early warning in Bank Mandiri based on CAMEL method is Operation Expenses Ratio (OER) and Return on Asset (ROA). Recommendation from this research is Bank Mandiri needs to take notice on movement of trend at NPL ratio, ROA, and LDR. Bank Mandiri also needs to maintain movement of OER in order to has optimal ROA because there is strong relation between OER and ROA.