ANALYSIS OF BANK SOUNDNESS USING RGEC & BANKOMETER MODELS (CASE STUDY ON CONVENTIONAL COMMERCIAL BANK LISTED ON THE INDONESIAN STOCK EXCHANGE PERIOD 2017-2022)
Indonesia's economy has been facing stagnation in growth with a rate of 5% over 2017-2019. The banking sector plays a crucial role in the country's economic growth as it drives the economy. However, in the last five years, there has been a noticeable decline in the Return on Assets (ROA) and an inconsistent increase in Non-Performing Loans (NPLs), which has led to a contraction in banking activities. This study aims to evaluate and compare two methods of analyzing bank health, RGEC and Bankometer, on 38 Conventional Commercial Banks listed on the Indonesia Stock Exchange from 2017 to 2022. From the results of a bank soundness assessment using the RGEC model, there are eight banking companies that are categorized as very healthy, while 25 companies are considered healthy. Also, four banking companies fall under the fairly healthy category, and only one is classified as unhealthy. There are no companies in the study that fall into the unhealthy category. Then from the analysis of the Bankometer model using the same timeframe the results show that all banks are in the very healthy Category.
RGEC, Bankometer, Bank Soundness.