SOUNDNESS RATING OF BANKS IN INDONESIA PERIOD 2015-2019

Banks in conducting their business must always pay attention to their soundness by RGEC, Risk Profile, Good Corporate Governance, Earning, Capital to know it belongs to the category of unhealthy, less healthy, fairly healthy, healthy, or very healthy. This study aims to determine bank ratings and to determine whether there are differences in the health condition of banks listed on the Indonesia Stock Exchange in 2015 – 2019 and analyzed based on average composite rankings and one way ANOVA tests to reach comparative conclusions of various RGEC indicator. Based on the risk profile indicator the highest LDR obtained by BJTM and lowest by BBTN, highest NPL obtained by BBCA and the lowest by BEKS, the second indicator is good corporate governance measured using the composite value and the highest obtained by BBCA, NISP, BMRI, BJBR, BJTM, BDMN, BBRI, BBNI and the lowest by BEKS, another indicator is earning measured using NIM, for the highest obtained by BDNM and the lowest by NISP, for ROA the highest obtained by BBCA and the lowest by BEKS, the last indicator is Capital measured using CAR obtained the highest is BJTM and the lowest is BEKS. The ANOVA test results show that there are differences in the health condition of banks in Indonesia for the 2015-2019 period.

ECONOMIC DEVELOPMENT AND PUBLIC POLICY: SCANDINAVIA AND SIBERIA

The report provides a comparative analysis of the current state of the countries of Scandinavia and Siberia. The purpose of the study: to show that sound state economic policies of the countries of Northern Europe lead to undeniable socio-economic progress. Based on the World Bank ratings, information from Rosstat of Russia, and expert opinions, the components of such a policy and the possibility of borrowing the experience of other countries in reforming economies are analyzed. Based on the specific tasks facing the system of regional planning and forecasting in the context of current trends in the development of Russia and the increasing impact of negative foreign economic and foreign policy factors on it, taking into account the experience of Scandinavia, the focus is on the role of technological development and innovation, state support of entrepreneurship. Institutional conditions for the implementation of nationwide reforms of federal relations and mechanisms to overcome stagnation in the development of Siberia are discussed.

Effect of Risk Based Bank Rating on Financial Performance of Sharia Commercial Banks

Risk Based Bank Rating (RBBR) is one of the assessments of the new health level of the bank in lieu of CAMELS in accordance in Bank Indonesia Regulation No. 13/1 / PBI / 2011. This study aims to examine the effect of Risk-Based Bank Ratings (Risk Profile, Good Corporate Governance, Earning and Capital) on Financial Performance (ROA). The method used is descriptive statistics, determination of regression models, classic assumption tests, multiple linear regression methods and hypothesis testing. The type of data in this study uses panel data. Based on the results of the study indicate that the ratio of NPF, GCG and CAR does not significantly influence ROA. While the ratio of FDR, BOPO and NOM has a significant effect on ROA.

Recent Trends in Correspondent Banking Relationships

Correspondent banking relationships (CBRs), which facilitate global trade and economic activity, have been under pressure in several countries. So far, cross-border payments have remained stable and economic activity has been largely unaffected, despite a recent slight decrease in the number of CBRs. However, in a limited number of countries, financial fragilities have been accentuated as their cross-border flows are concentrated through fewer CBRs or maintained through alternative arrangements. These fragilities could undermine affected countries’ long-run growth and financial inclusion prospects by increasing costs of financial services and negatively affecting bank ratings.