Evaluating The Performance of State Owned Banks and Private Foreign Banks In Indonesia During 2000- October 2005

Abstract

Yuresta, Desi (2006). Evaluating The Performance of State Owned Banks And Private Foreign Banks In Indonesia During 2000-October 2005. Yogyakarta. Faculty ofEconomics. Islamic University of Indonesia. This research aims to evaluate and compare the performance of state-owned banksand private foreign banks in Indonesia for the period of 2000-October 2005 by using the CAMEL method. CAMEL is one method to evaluate the banks performance. In CAMEL method we evaluated five aspects: Capital, Assets, Management, Earnings, and Liquidity. In this research capital is proxywith CAR, Assets is represented by BDRand Classified Assets Reserves, Management is proxy with NPM, Earnings are scoring with ROA and Operating Efficiency Ratio, and liquidity is represented by LDR and CML. This research applies linear regression model of the CAR, BDR, Classified Asets Reserves, NPM, ROA, Operating Efficiency Ratio, LDR and CML as the independent variables and CAMEL score as the dependent variable. The result of this research shows that that only Classified Assets reserves, ROA, Operating Efficiency Ratio and CML that have a significant difference in performance of state-owned banks and private foreign banks. Moreover, CAR, BDR, NPM, and LDR variables are insignificant. The CAMEL score between state-owned banks and private foreign banks is also insignificant. It seems that the banks performance between those two banks is not different. It may happen because Bank Indonesia has set up a special regulation to maintain the bank performance in Indonesia.