COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE IN INDONESIAN BANKING AND CHINA BANKING

Bank as an important part of the financial system, play an Important role in contributing to economic development of a State. If the industry does not go well, the adverse effects to the economy can have a big and spacious. Indonesian banking and China banking are relatively strong compared to other countries even during the global crisis in 2008.

The objective of this research is to comparative analyze of performance between Indonesian banking and China banking. Source data used are the financial statements of each of the six Indonesian banking and China banking in 2003-2010. The selected bank is a bank that the greatest net income and is positive on the research period. Indicators used to assess the bank’s performance are Return on Assets (ROA), Return on Equity (ROE), Non-Performing Loans (NPL), Capital Adequacy Ratio (CAR), Net Interest Margin (NIM), and Loan to Deposit Ratio (LDR).

Results of analysis using the method of Independent sample T-test. From the test results obtained that Indonesian banking and China banking have different performance. If look to the average bank performance indicators, the average performance of Indonesian banking is higher than China banking unless the average NPL.

 

Keyword:  Return on Assets (ROA), Return on Equity (ROE), Non-Performing Loans (NPL), Capital Adequacy Ratio (CAR), Net Interest Margin (NIM), and Loan to Deposit Ratio (LDR).