The Influence of Bank Health Level with RGEC and Methods Market Share on Liquidity Level (Study on State-Owned Banks Listed on the IDX for the Period 2012-2020)

Hermin Sirait, Irma Citarayani, Saminem Saminem, Endang Tri Pujiastuti

Abstract


This study aims to determine how the influence of the financial soundness of banks based on the RGEC (Risk Profile, Good Corporate Governance, Earnings and Capital aspects) method and Market Share, on the level of liquidity in state-owned banks listed on the IDX for the period 2012 to 2020. This study was carried out by processing secondary data, the analysis technique used multiple linear regression. The results of this study indicate that the financial soundness of banks using the RGEC method has no effect on liquidity, and the market share of both Loan market share and Deposit Market share has a negative effect on liquidity. The effect of financial soundness of banks and market share only affects about 30% of the Loan to Deposit Ratio, and about 70% is influenced by other factors.


Keywords


financial soundness of banks; market share; liquidity; state-owned banks

Full Text:

PDF

References


Agustina, VU, Djaelani, AK & Priyono, AA 2017, ‘Influence The Level of Corporate Financial Soundness on Profit Growth in Islamic Banking in Indonesia for the 2012-2016 Period’, e-Management Research Journal, pp. 43-53.

Ambarita, MN (2017), Factors Affecting Loan To Deposit Ratio (LDR) Commercial Banks. Economics Development Analysis Journal, 70-76.

Andrayani, EA 2018, 'Effect of Capital Adequacy, Credit Risk, Efficiency, Operational, and Liquidity on Profitability of Conventional Banking Companies in Indonesia', Thesis, FE Yogyakarta State University.

Anthony Halim, Claresta Hartawan Setio, Titin Pranoto, Vania Pradipta Gunawan, 2019. Effect of Diversification Strategy on Efficiency in Manufacturing Companies listed on the Indonesia Stock Exchange. Journal of Accounting, School of Business and Economics, Prasetiya MulyaUniversity

Astuti, Febriana Dwi. 2018. The Effect of Bank Soundness Level Using the RGEC (Risk Profile, Good Corporate Governance, Earnings, Capital) Method on Profit Growth in Banking Sector Companies Listed on the Indonesia Stock Exchange. Journal of accounting science, University of Lampung.

Come on, Riska. 2018. Good Corporate Governance, Earnings, and Capital on Profit Growth of Banks Listed on the Indonesia Stock Exchange (IDX) for the 2014-2017 period. Journal of Accounting, Islamic University of Malang.

Bank Indonesia. 2011. Bank Indonesia Circular Letter No. 13/1/PBI/2011 concerning Assessment of Commercial Bank Soundness Level. Jakarta: Bank Indonesia

Bank Indonesia, 2004. Bank Indonesia Circular Letter No. 6/23/DPNP (National Banking Supervisory Board). Jakarta: Bank Indonesia

Bank Indonesia. 2007. Bank Indonesia Regulation No. 9/13/PBI/2007 dated November 1, 2007. Jakarta

Brigham, EF & Houston, JF 2016, Fundamentals of Financial Management, 14th edn, Cengage Learning, Boston.

Budisantoso, Totok and Sigit Triandaru, 2006, Banks and Other Financial Institutions, Jakarta, Salemba Empat Publisher.

Daniel Yusuf1, TM Adriansyah2 Management Study Program at Amir Hamzah University, Medan, North Sumatra

Darmawi, H., 2011, Banking Management, Jakarta: Bumi Aksara, Jakarta.

Fahmi, I. 2012. Financial Performance Analysis. Bandung: Alfabeta

George, R & Kabit, R 2005, ‘Corporate Diversification and Firm Performance: Does the Organizational Form of the Firm Matter?’, FMA Annual Meeting, pp. 1-81.

Hariyono VJ & Untu VN (2021) Comparative Analysis of Bank Health Level Based on RGEC Method in Bank Mandiri and Bank BCA Period 2015-2019, Sam Ratulangi University.

Harjito, DA & Martono, S 2014, Financial Management, 2nd edn, Ekonisia, Yogyakarta.

Harto P. & Irsyada H. (2019) The Effect of RGEC-Based Bank Health Level on Financial Distress (Study on Banking Companies Registered in the IDX in 2015-2017); Diponegoro Journal Of Accounting.

Hendra, STN & Hartomo, DD (2017) The Effect Of Concentration And Market Share On Bank Risk Taking. Journal of Business and Management, 17 (2), p. 35–50. DOI: 10.20961/jbm.v17i2.17176.

Indonesian Accounting Association. 2012. Financial Accounting Standards. Jakarta: Salemba Empat

Imam Ghazali, 2011. Application of Multivariate Analysis with SPSS Program 19. Semarang. Undip Publishing Agency.

Kasmir 2016, Financial Report Analysis, PT. Rajagrafindo Persada., Jakarta.

National Committee on Governance Policy, 2006. General Guidelines for Good Corporate Governance Indonesia, Jakarta

Kotler, Philip T., Keller, Kevin Lane 2014, Marketing Management, 15th edn, Pearson Prentice Hall, New Jersey.

Magdalena, S., Suhatman, R. (2020). The Effect of Government Expenditures, Domestic Invesment, Foreign Invesment to the Economic Growth of Primary Sector in Central Kalimantan. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). Volume 3, No 3, Page: 1692-1703.

OJK 2016, 'Financial Services Authority Regulation Number 4 POJK.03/2016 on Public Bank Health Assessment', Financial Services Authority, Jakarta.

PBI 2007, 'PBI No. 9/13/PBI/2007 on the Obligation to Provide Minimum Capital of Public Banks Taking into Account Market Risk ', Jakarta, Bank Indonesia.

PBI 2011, 'PBI No.13/1/PBI/2011 Article 6 on the Assessment of the Health Level of General Banks', Bank Indonesia, Jakarta.

Sa'diah, R 2017, 'Analysis of Islamic bank health by using RGEC method (Risk Profile, Governance, Earnings and Capital) in maintaining health stability in PT. Bank BNI Syariah in 2016 ', Digital Library, Sunan Ampel State Islamic University, Surabaya.

Saputra, H, Afrizal, A & Makmur 2016, 'Analysis of Bank Health Level Using CAMEL Ratio (Case Study on Bank Rakyat Indonesia (Persero) Tbk)', Scientific Article, FE Universitas Pasir Pengaraian, Riau.

Satoto, SH 2009, 'Diversification Strategies for Corporate Performance', Journal of Finance and Banking, vol 13, no. 2, pp. 280-287.

Shah, M. M., et al. (2020). The Development Impact of PT. Medco E & P Malaka on Economic Aspects in East Aceh Regency. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). Volume 3, No 1, Page: 276-286

Sholiha M., Askandar, and Sari, (2020) The Influence of Bank Health Level on Company Profit Growth with GREC Method (Study on BUMN BUMN registered in IDX Period 2015-2018); Journal of Economics and Business, Islamic University of Malang

Siregar D., Analysis of Factors Affecting Liquidity Risk, Faculty of Economics and Business, Medan Area University, Indonesia; Journal of Education, Humanities and Social Sciences (JEHSS)




DOI: https://doi.org/10.33258/birci.v4i4.3159

Article Metrics

Abstract view : 0 times
PDF - 1 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.