Analysis of Bank Soundness Using the RGEC Method in StateOwned Banks Listed on the Indonesia Stock Exchange 2015-2018

ABSTRACT : Bank Indonesia (Central Bank of Indonesia) instructed all banks in Indonesia to maintain theirsoundness level under the standards given based on economic development to create renewable standardsthrough PBI No. 13/1 / PBI / 2011 replacing the previous PBI No. 6/10 / PBI / 2004 concerning BankSoundness Level Assessment System. The soundness level of a bank is one of the most important benchmarksof a bank’s financial performance because the results of this assessment can reveal the performance andprofessionalism of the bank. Based on Financial Services Authority Regulation No.4 / POJK. 03/2016concerning Assessment of Commercial Bank Soundness Level, Bank Soundness Level is the result of anassessment of the Bank’s condition which is carried out on the risk and performance of the Bank. The purpose ofthis study was to analyze the soundness level of state-owned commercial banks using the RGEC method,namely the Risk Profile, Good Corporate Governance (GCG), Earnings and Capital. This research uses aquantitative descriptive approach. The results show that during the 2015-2018 period, state-owned commercialbanks were ranked 2 with good criteria so that they were considered capable of facing significant negativeeffects from changes in business conditions and other external risk factors.

Keywords: Banks, RGEC, state-owned bank