Analysis of the Soundness Level of All Islamic Commercial Banks in Indonesia 2016-2020 Using the RGEC Method

Wily Mohammad and Nabilla Ryca Maulidiyah
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Nabilla Ryca Maulidiyah: PT Chishiki NoHikari Indonesia

No rcs7m, OSF Preprints from Center for Open Science

Abstract: Sharia Commercial Banks increased in number from 12 in 2015 to 14 banks in 2020, accompanied by an increase in the number of offices from 1,990 to 2,034 offices in 2020. This achievement must continue to be improved. Therefore, the soundness of Islamic banking must also continue to be improved. The purpose of this study is to practice using the RGEC method in showing the soundness of Islamic commercial banks, as well as to compare the soundness of Islamic commercial banks which are ranked fifth based on the calculation of the final composite value. The benefit of this research is that the public can determine which Islamic commercial bank is better in terms of banking health using the RGEC method. The data analysis method uses the RGEC (Risk Profile, Good Corporate Governance, Earning, and Capital) method by taking NPF, FDR, Self-Assessment GCG, ROA, ROE, NI, BOPO, and CAR data from Islamic commercial bank reports. The results of this study are: First, the soundness of Islamic commercial banks using the RGEC method produces different categories of soundness. In the final result, there are Islamic commercial banks that have PK-1 to PK-5 results. Second, the ranking of the top five of 14 Islamic commercial banks based on the calculation of the final RGEC composite value has different results every year. Based on the average Final Composite Value, the top five ranks respectively are the National Sharia Pension Savings Bank (93.708 Category PK-1 (Very Healthy)), Aceh Syariah Bank (score 89.71 Category PK-1 (Very Healthy)), BPD Nusa Tenggara Barat Syariah (score 87.99 Category PK-1 (Very Healthy)), Bank BNI Syariah (score 86.85 Category PK-1 (Very Healthy)), and Bank Syariah Mandiri (score 81.14 Category PK- 2 (Healthy)).

Date: 2022-05-18
New Economics Papers: this item is included in nep-ban, nep-dem, nep-isf and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:rcs7m

DOI: 10.31219/osf.io/rcs7m

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