COMPARATIVE HEALTH ANALYSIS OF NATIONAL BANK, JOINT VENTURE BANKS AND FOREIGN BANKS IN INDONESIA
Abstract
Risk-Based Bank Rating approach (RBBR) is used to determine the health of banks in Indonesia, both for national banks, joint venture banks and foreign banks. This approach uses five (5) proxies ie Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), Return on Assets (ROA), Net Interesr Margin (NIM), and the Capital Adequacy Ratio (CAR). From the research conducted, the result that the overall of 5 (five) variables studied show that national banks are healthier than the other two types of banks, namely venture banks and foreign banks, because the national bank has a value beyond the provisions of Bank Indonesia. Partial variable LDR has consistently been shown to vary significantly between national banks, joint venture banks and foreign banks. LDR joint venture banks and foreign bank is higher than the national bank. These conditions indicate the bargaining position of joint venture banks and foreign banks in serving the needs of public borrowing is much higher than the national bank, which resulted in increasing the ability of both types of banks in generating profit. Simultaneously throughout the study variables was significantly different among the national banks, joint venture banks and foreign banks..