LINEAR MODEL OF ISLAMIC BANK HEALTH BASED ON RISK BASED BANK RATING METHOD INCLUDING VBA (VISUAL BASIC FOR APPLICATIONS)

• Main Author: Ronel, Luca
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72990
• Institution: Institut Teknologi Bandung

In this study, the author will assess the level of health of Islamic banks using the Risk Based Bank Rating (RBBR) method. The constructed model will be implemented using quarterly financial data of banks. Multiple linear regression model will be employed to explain the relationship between Non Performing Financing (NPF), Financing to Deposit Ratio (FDR), Good Corporate Governance (GCG), Return on Asset (ROA), Net Operating Margin (NOM), and Capital Adequacy Ratio (CAR) financial ratios to the bank health score obtained through RBBR. An application using Visual Basic for Applications (VBA) programming language will be developed to assist in constructing the linear model. The significance of the parameters obtained from the linear model will be used as indications of anomalies in the behavior of banks in maintaining their health scores. These indications will be further examined by analyzing the annual financial reports to provide a qualitative assessment of Islamic bank health.