Soundness and Performance Bank in Indonesia Year 2014 – 2020

Azwarsyah, N A Achsani, T Andati

ICOBEST 2021 - Digitalization and Opportunities in The Tough Time - ISBN 978-623-95562-1-1

Abstract

This study examines the effect of aspects of the bank financial performance (ROE, DER, NPM and EPS) and bank soundness (NIM, GCG, NPL, CAR) on stock prices of banking companies listed on the Indonesia Stock Exchange in 2014 – 2020. The sample in This study amounted to 21 banking companies. The analytical method used in this research is panel data regression analysis. This study found that ROE, NPM, and EPS had a significant effect on stock prices, while DER, GCG, NIM, NPL, and CAR had no significant effect on stock prices. Based on the test results, the results show that in general the performance level of banking companies is still in accordance with the standards set out in Bank Indonesia Regulation Number. 6/10/PBI/2004 and the banking soundness of all banks is still within the standard in accordance with Bank Indonesia Circular Letter Number. 15 /15/DPNP 2013.

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