An Analysis of EAGLES to Measure the Difference of Financial Performance of Foreign Exchange Bank and Non-Foreign Exchange Bank (2004-2007)


Ayuningtyas, Dian. 2010.  An Analysis of EAGLES to Measure the Difference of Financial Performance of Foreign Exchange Bank and Non-Foreign Exchange Bank (2004-2007). Thesis, Management Department, Economic Faculty, State University of Malang. Advisors: (I) Lulu Nurul Istanti, S. E., M.M, (II) Ely Siswanto, S.Sos.,M.M.

Keywords: Bank Financial Performance, EAGLES, Foreign Exchange Bank, Non-Foreign Exchange Bank

The bank financial performance is the description of its financial condition in certain period of time which is generally measured by the capital adequacy indicator, liquidity and profitability of bank. This study employs EAGLES analysis because it can measure and compare the bank performances more correct, objective, and consistent. The EAGLES ratios which are used are ROA, ROE, Asset Quality, DGR, LGR, Liquidity, CAR, CCR, SRQ by outinterest and SRQ by personalia. The subject of study is foreign exchange bank and non-foreign exchange bank. Foreign exchange bank is a bank which does transactions at home and abroad, meanwhile non-foreign exchange bank is the bank has not got the license to do abroad transactions.

This study aims at finding out (1) the financial performance of foreign exchange bank and non-foreign exchange bank based on the aspect of Earning Ability, Asset Quality, Growth, Liquidity, Equity, Strategic Management, (2) the difference of the financial performance of foreign exchange bank and non-foreign exchange bank using EAGLES ratio. The data used is sourced from the financial report of 2004-2007. The population is all foreign exchange bank and non-foreign exchange bank in Indonesia, either which listed in the Indonesia Stock Exchange Inc. or not during 2004-2007 so there are 72 banks, however after the purposive sampling technique is employed, the sample is 56 banks. The data analysis technique is the parametric statistic technique with the t-test method in the SPSS program.

The findings show that (1) there is no difference in the financial performance of foreign exchange bank and non-foreign exchange bank based on ROA (Return On Assset), ROE (Return On Equity), DGR (Deposite Growth Rate), Liquidity, LGR (Loan Deposit Ratio), CCR (Core Capital Ratio),  SRQ by personalia, (2) there is difference of the financial performance of foreign exchange bank and non-foreign exchange bank based on the aspect of Asset Quality, CAR (Capital Adequacy Ratio), SRQ by out interest, (3) there is no difference in the financial performance of foreign exchange bank and non-foreign exchange bank based on the aspects of  EAGLES.

Based on the findings, it is suggested that the further research should add the research sample which is represented the examined banking condition. For banking party, customers and the research community that they should use it as the information of the result of bank performance of foreign exchange bank and non-foreign exchange bank based on the EAGLES ratio so they will be able to make the right decision.

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