ANALYSIS OF FINANCIAL

PERFORMANCE HEALTH

NINGRUM SURYADINATA, S.AB., M.Si

Bank Activities
1. Collecting funds
2. Channeling funds
3. Providing other services
In general, the types of banks that exist are divided into 3 namely Central Banks, Commercial
Banks, and Rural Banks. All the bank are under the auspices of bank Indonesia. So that, Bank of
Indonesia has an authority to make an effectiveness and efficiently of financial bank. They are able
set a rules to make the bank’s finance be health. This study examines the health of rural banks.
this is because BPR is part of the banking system that aims to be able to drive and build a healthy
and comprehensive regional economy. The presence of this BPR can help people who have a
businesss. (Saleo et al., 2143)

This health analysis is considered able to analyze and evaluate the performance of rural
banks as internal control and evaluate its performance.
■ In principle, financial health assessment is in the interests of bank owners and managers,
the community of bank service users, or bank supervisors and Trustees.

management Rural policy

Bank

■ To show the community that the bank is competent

■ to increase competition against other banks
■ To predict the problems early
 Literature Review
■ Financial Report
Financial reports basically is the end result of the
accounting process within a certain period is the
result of data collection financials are presented in
the form financial statements or summaries others
that can be used as tools for internal users assess the
performance of such companies can make the right
decision. (Afriyanto, 2015)
 Rural Bank
BPR activities are to collect funds in the form of
savings and time deposits, as well as distribute
funds in the form of investment credit, working
capital credit, and trade credit. BPRs are prohibited
from accepting demand deposits, participating in
the clearing, conducting foreign exchange and
insurance activities. (Kasmir & Lainnya, 2014)
■ Bank Financial Performance Health Level
a. Capital
The standard on the minimum capital requirement or CAR is used to measure how strong the bank's capital
covers the risks that exist in the bank.
b. Asset
Asset ratio is a measure to assess the level of efficiency of the bank in utilizing its resources or the types of
assets owned by the bank
c. Management
Management will determine whether a bank is healthy or not. The risk management questionnaire is divided
into sub-groups relating to liquidity risk, market risk, credit risk, operational risk, legal risk and owner and
manager risk
d. Earning
This criteria determines how many activities that provide financial stability for the bank
e. Liquidity
Liquidity determines how capable and loans given to the public can return to the bank.
 Financial Health Rasio with CAMEL
Criteria CAR KAP NPL ROA BOPO LDR

Healthy >8% 0,0% < 10,35% >2% - < 5% >1,22 % < 93,52 % ≤94,75%

Healthy 7,9 – 8 >5% - < 8 % 0,99 – 1,21 93,52 – 94,73 ≥94,75% -

10,35 – 12,60%
enough %   % % <98,50%

6,5 - 0,77 – 0,98 94,73 – 95,92 ≥98,50% -

Too health <7,9%
12,61 – 14,85% >8% - < 12%
% % <102,25%

Not health < 6,5 % >14,86% >12% < 0,76 % < 95,92 % >102,25%

Source : Andriasari & Munawaroh, 2020

CONCEPTUAL FRAMEWORK
A. The CAR ratio will measure the ability of banks to full the long-term activities in credit activities. (Syaifullah,
2015) so, it has to create a healthy capital and asset performance, so not to give losses and take effect the
bank's capital. (Rama Nopiana & Chasanah, 2018)

B. Asset : This can be known from the amount of bad loans that occur in rural banks. the result research from
(Junus & Lagata, 2017) explained that rural banks need to anticipating the bad loans number and pressing the
doubtful loans number by observation and selection strict before give a credit to the applicant.

C. Management : Based on SK DIR BI No. 30/12/KEP / DIR and SE BI No. 30/3 / UPPB dated April 30, 1997 on
how to assess the level of productive, general management, profitability management and liquidity
management, management factor assessment is based on 25 aspects that give emphasis to general
management (10 indicators consisting of Strategy/goal assessment, structure, system, and leadership) and (15
indicators consisting of liquidity risk assessment, credit risk, operational risk, legal risk and owner and
management risk).

D. Earning, determining income, there is no separation between funds used for operational bank activities and for
bank productivity. (Rama Nopiana & Chasanah, 2018). The profitability ability to generate profits from its total
assets is also a requirement for calculating to determining the level of Health.

E. Liquidity, Financial risk in the bank system can be defined as delayed installments payment or not paid at all. It
is certainly affects to liquidity to trigger bank cash problems, therefore, financial risk to be the main causes of
bank failure.
CONCLUSION

All that is included in CAMEL with its values has each war is very important in
determining whether or not a bank operates. BPR ADY uses CAMEL with the existing
calculation level, will determine the health level of the bank. This is because the five
CAMEL factors are the basic factors for measuring the performance of a bank from 5
aspects that assess company performance. In order to improve its health level, it is
recommended that BPR ADY Jember terns improve credit activities with limits that are in
accordance with the health level of the bank, so as to maintain its health level. The results of
the CAMEL method can also be used as a reference for rating the company.
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