Analysis of Differences Financial Performance Between Government Bank and National Private Bank Listed on Indonesia Stock Exchange on 2018-2021 using the RGEC Method

Abstract

This study aims to determine the differences in the financial performance of state banks and national private banks listed on the Indonesia Stock Exchange in 2018-2021 using the RGEC method. In addition, this study aims to determine the comparison between state banks and national private banks listed on the Indonesia Stock Exchange in 2018-2021 which have better (healthier) financial performance using the RGEC method based on regulations set by the government. The sample used in this study is a sample taken by purposive sampling technique, the criteria used are banks that are included in the Top 500 Most Valuable Bank Brands 2021. There are 9 banks that meet the criteria consisting of 4 state banks and 5 national private banks. This study uses four aspects of the RGEC method, namely the risk profile (NPL & LDR), the GCG aspect which is measured using a composite rating, aspects of earnings (ROA), and aspects of capital (CAR). The results of the analysis of this study indicate that during 2018-2021, there are significant differences in financial performance in terms of NPL & CAR, while LDR, GCG, ROA show no significant differences in the financial performance of the two banks. National private banks have better (healthy) financial performance compared to state banks in 2018-2021.