Study of Conventional Bank Health in Indonesia from 2012 to 2017

DOI

10.2991/aebmr.k.200331.015How to use a DOI?

Keywords

banking health, conventional, CAMELS, RGEC

Abstract

Health bank level method that had been changed three times, from CAMEL, CAMELS to RGEC is Bank Indonesia’s strategy in order to protect banking sector which is susceptive to economy crisis. It is attractive because RGEC method is just implemented in Indonesia’s banking sector and it known from international researches that are still using CAMELS such as Vietnam, South Africa, India and Bangladesh. Then, the aim of this study is to analyze conventional health bank in Indonesia by combining CAMELS and RGEC methods; assets, rentability, liquidity, solvability and sensitivity of market risk. This study’s object is conventional bank in Indonesia with 50 banks as sample and period of study is from 2012 to 2017. The result of this study shows that assets ratio which is represented by Capital Adequacy Ratio and Net Interest Margin are mostly on 1 and 2 composite level. Rentability ratio which is represented by Return on Assets and Net Profit Margin are on 1 and 3 composite level, while Loan to Deposit Ratio and Net Performing Loan which represent liquidity ratio are mostly on composite level 1. Then, solvability ratio is represented by Operational Fee of Operational Income and sensitivity of market risk ratio is represented by Interest Rate Risk are on composite level 1 commonly. It means that conventional health bank in Indonesia from 2012 to 2017 is very healthy or adequate. From the result of this study is expected to be able to increase society’s trust to banking sector then it can increase people investment in bank which is directly could support economy growth of Indonesia.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yusnita Octafilia
AU  - Evelyn Wijaya
PY  - 2020
DA  - 2020/04/06
TI  - Study of Conventional Bank Health in Indonesia from 2012 to 2017
BT  - Proceedings of the 6th Annual International Conference on Management Research (AICMaR 2019)
PB  - Atlantis Press
SP  - 64
EP  - 68
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200331.015
DO  - 10.2991/aebmr.k.200331.015
ID  - Octafilia2020
ER  -