Saudi Journal of Business and Management Studies (SJBMS)
Volume-4 | Issue-04 | 297-305
Original Research Article
Comparative Analysis Implementation of Circular Letters Financial Services Authority Number 14 / Seojk.03 / 2017 Concerning Assessment of The Soundness Level of Regional Development Banks (Case Study at Bank DKI and BPD JAWA Tengah)
Muhammad Laras Widyanto
Published : April 30, 2019
Abstract
This study aims to analyze the implementation of the Financial Services Authority's circular letter number 14 / SEOJK.03 / 2017 concerning the health level of regional government-owned banks through a comparative analysis between Bank DKI Jakarta (“Bank DKI”) and Regional Development Bank Jawa Tengah (“BPD Jawa Tengah”) in 2017, the soundness level of PT BPD Jawa Tengah before implementation (2016) and after implementation (2017) and the soundness level of Bank DKI before implementation (2016) and after implementation (2017). The method used in this study is RGEC (Risk Profile, Good Corporate Governance, Earning, Capital), while the long-term goal is modeling the financial performance strategy of the Regional Development Bank. The results of this study shows that the comparison of the performance of Bank DKI and PT BPD Jawa Tengah in 2017 are not significant difference; the comparison of the performance of PT BPD Jawa Tengah are not significant difference for 2016 and 2017, but the comparison the performance of Bank DKI for 2016 and 2017 are significant difference. The implementation of Circular Letter Number 14 / SEOJK.03 / 2017 regional development banks period 2016 (before) and 2017 (after), shows that the assessment of financial performance of PT BPD Jawa Tengah are not significant difference, however the assessment of financial performance of Bank DKI are significant difference. In 2017 after the implementation of Circular Letter Number 14 / SEOJK.03 / 2017 the results shows that the comparison of the performance of PT BPD Jawa Tengah and Bank DKI are not significant difference.