A Health Level and Risk Rating Monitoring System of Village Credit Institutions
Keywords:health level, management, monitoring, risk rating, village credit institution
As a financial institution that is very vulnerable to negative issues, Bali Governor Regulation No 44/2017, which regulates the management of an LPD (Village Credit Institution) directs that LPDs be managed carefully. Performance indicators that must be considered are the level of health and risk rating of the LPD, which are determined by a number of factors/components related to the financial condition and procedures for managing the LPD. The procedure for determining it is clear, but requires careful calculations and seems difficult for those who do not understand it. Knowledge of the level of health and risk rating will make it easier to find alternative solutions when the LPD has problems. Building a health level and risk rating monitoring system is a solution. The system is built using the Waterfall method with an object-oriented system approach. This system will greatly assist the manager and the supervisory team to maintain good LPD performance, and can quickly anticipate situations that cause the LPD's performance to decline, which is shown from the factors/components of the health level monitoring results and risk ratings by this system.
Abadi, A. (2016). A new method to analyze bank performance level in Indonesia using fuzzy model. In Int. Math. Forum.
Akhyar, C., Marzuki, M., Azhar, A., & Syamni, G. (2018). Profit growth in Indonesian sharia bank: The impact of RGEC. International Journal of Engineering & Technology, 7(3.30), 587-591.
Anwar, A. N. (2016). Analysis of Indonesian Islamic and conventional banking before and after 2008. International Journal of Economics and Finance, 8(11), 193-199.
Arsyad, L. (2005). An assessment of microfinance institution performance. Gadjah Mada International Journal of Business, 7(3), 391-427.
Arsyad, L. (2006). Assessing Factors Affecting The Repayment Rate Of Microfinance Institutions. Gadjah Mada International Journal of Business, 8(2).
Astuti, T., & Simarmata, M. M. (2020). Participation and community motivation to protect the Forest Park Tahura of Bukit Barisan. International Research Journal of Management, IT and Social Sciences, 7(5), 78-88. https://doi.org/10.21744/irjmis.v7n5.973
Bansal, R., & Mohanty, A. (2013). A Study on financial performance of commercial banks in India: Application of Camel model. Al-Barkaat Journal of Finance & Management, 5(2), 60-79.
Bize, R., Johnson, J. A., & Plotnikoff, R. C. (2007). Physical activity level and health-related quality of life in the general adult population: a systematic review. Preventive medicine, 45(6), 401-415. https://doi.org/10.1016/j.ypmed.2007.07.017
Bone, C., Wulder, M. A., White, J. C., Robertson, C., & Nelson, T. A. (2013). A GIS-based risk rating of forest insect outbreaks using aerial overview surveys and the local Moran's I statistic. Applied Geography, 40, 161-170. https://doi.org/10.1016/j.apgeog.2013.02.011
Booch, G., Jacobson, I., & Rumbaugh, J. (2004). The unified modeling language reference manual Second Edition.
Broadbent, J., & Laughlin, R. (2009). Performance management systems: A conceptual model. Management Accounting Research, 20(4), 283-295. https://doi.org/10.1016/j.mar.2009.07.004
Burke, L. E., Wang, J., & Sevick, M. A. (2011). Self-monitoring in weight loss: a systematic review of the literature. Journal of the American Dietetic Association, 111(1), 92-102. https://doi.org/10.1016/j.jada.2010.10.008
Bustamam, U. S. A. (2017). CAMEL ratio on profitability banking performance (Malaysia versus Indonesia). International Journal of Management, Innovation & Entrepreneurial Research.
Candra, V. E., & Jayanto, P. Y. (2017). The Effect of RGEC Method, Management, and Cooperation Identity on The Health Level of BMT. Accounting Analysis Journal, 6(3), 478-491.
Christian, F. J., Tommy, P., & Tulung, J. (2017). Analisa kesehatan bank dengan menggunakan metode RGEC pada Bank BRI dan Mandiri periode 2012-2015. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 5(2).
Cohen, D. A., Scribner, R. A., & Farley, T. A. (2000). A structural model of health behavior: a pragmatic approach to explain and influence health behaviors at the population level. Preventive medicine, 30(2), 146-154. https://doi.org/10.1006/pmed.1999.0609
Devianto, Y., & Dwiasnati, S. (2018). Banking Health Assessment Using CAMELS And RGEC Methods, Using OJK’s Banking Financial Statement Data. International Journal Of Engineering And Computer Science, 7(8), 24187-24196.
Dzeawuni, W. A. (2008). CAMELs and banks performance evaluation: The way forward. Professor Muhammad, CAMELs and Banks Performance Evaluation: The Way Forward (June 24, 2008).
Esomar, M. J. F., Loppies, L., & Turukay, E. (2020). The analysis of the influence of risk profile, good corporate governance, earning and capital (RGEC) towards the company value in the sub-sector of foreign exchange private national commercial bank which is listed on the Indonesia stock exchange (IDX). Int. J. Adv. Sci. Technol.
Giné, X. (2011). Access to capital in rural Thailand: An estimated model of formal vs. informal credit. Journal of Development Economics, 96(1), 16-29. https://doi.org/10.1016/j.jdeveco.2010.07.001
Guerrero, L. A., Maas, G., & Hogland, W. (2013). Solid waste management challenges for cities in developing countries. Waste management, 33(1), 220-232. https://doi.org/10.1016/j.wasman.2012.09.008
Gunawan, B., & Arvianda, K. M. (2019). Bank Health Level Analysis Using CAMELS and RGEC Methods on PT Bank Panin Dubai Syariah Ltd. In 5th International Conference on Accounting and Finance (ICAF 2019) (pp. 20-26). Atlantis Press.
Hosen, M. N., & Muhari, S. (2013). Efficiency of the sharia rural bank in Indonesia lead to modified camel. International Journal of Academic Research in Economics and Management Sciences, 2(5), 34.
Khan, A. (2018). Financial performance analysis of public and private sector banks through camel model. Asian Journal of Applied Science and Technology, 2(2), 954-964.
Kosasih, J. I., & Hendrawan, D. (2016). Existence of entities ‘village credit institutions/lembaga perkreditan desa (lpd)’local community in Bali viewed from financial control system in Indonesia learning from Ba li local genius in increasing the local economy. Int. J. Appl. Bus. Eco n. Res.
Larman, C. (2005). Applying UML and patterns: an introduction to object-oriented analysis and design and iterative development. Pearson Education India.
Legg, C. J., & Nagy, L. (2006). Why most conservation monitoring is, but need not be, a waste of time. Journal of environmental management, 78(2), 194-199. https://doi.org/10.1016/j.jenvman.2005.04.016
Lisa, O., & Hermanto, B. (2021). Analysis of Risk Profile, Good Corporate Governance, Earnings, and Capital (Rgec) in Syariah Commercial Banks and Conventional Commercial Banks. e-Repository Dosen Universitas Gajayana Malang.
Liu, J., & Pariyaprasert, W. (2014). Determinants of Bank performance: The application of the CAMEL model to banks listed in China’s Stock Exchanges from 2008 to 2011. AU-GSB e-journal, 7(2).
Mahatama, A. A. B. P., & Wardana, M. (2021). The role of brand image and customer commitment in mediating service quality towards customer loyalty. International Research Journal of Management, IT and Social Sciences, 9(1), 79-89. https://doi.org/10.21744/irjmis.v9n1.2006
Majumder, M., Hossain, T., & Rahman, M. M. (2017). A camel model analysis of selected banks in Bangladesh. Mohammed Mizanur, A CAMEL Model Analysis of Selected Banks in Bangladesh (November 9, 2017).
Misra, R. (2008). Muntigunung Lembaga Perkreditan Desa, Indonesia: Village Ownership as a Model for Remote Outreach of Financial Services.
Morgan, D. P. (2002). Rating banks: Risk and uncertainty in an opaque industry. American Economic Review, 92(4), 874-888.
Octafilia, Y., & Wijaya, E. (2020). Study of Conventional Bank Health in Indonesia from 2012 to 2017. In 6th Annual International Conference on Management Research (AICMaR 2019) (pp. 64-68). Atlantis Press.
Perez, F., Gonzalez, C. J., & Aaronson, X. (2011). Village banking development model: FINCA Costa Rica. Journal of Business Research, 64(3), 316-324. https://doi.org/10.1016/j.jbusres.2009.11.019
Pressman, R. S. (2005). Software engineering: a practitioner's approach. Palgrave macmillan.
Rauf, A. L. (2016). Towards Increasing the financial performance: An application of CAMEL Model in banking sector in the context of Sri Lanka. Research Journal of Finance and Accounting, 7(5), 66-71.
Sahota, S., & Dhiman, B. (2017). Relative performance analysis of scheduled commercial banks in India: A CAMEL model approach. Indian Journal of Finance, 11(5), 40-57.
Schicks, J. (2013). From a supply gap to a demand gap? The risk and consequences of over-indebting the underbanked. In Microfinance in Developing Countries (pp. 152-177). Palgrave Macmillan, London.
Stella, L. A., & Puspitasari, R. (2020). Analysis of Bank Rating with RGEC Method Case Study at PT Bank Mandiri (Persero) Tbk for the Period 2013–2017. In 2nd International Seminar on Business, Economics, Social Science and Technology (ISBEST 2019) (pp. 240-245). Atlantis Press.
Susanti, J., Karma, I. G. M., & Dewi, N. W. K. (2021). Application Development for Assessing the Health Level of Village Credit Institutions Using the RGEC Method. In International Conference on Applied Science and Technology on Social Science (ICAST-SS 2020) (pp. 66-71). Atlantis Press.
Suvita, J., & Xiaofeng, H. (2012). A comparison of financial performance of commercial banks: A case study of Nepal. African Journal of Business Management, 6(25), 7601-7611.
Treacy, W. F., & Carey, M. (2000). Credit risk rating systems at large US banks. Journal of Banking & Finance, 24(1-2), 167-201. https://doi.org/10.1016/S0378-4266(99)00056-4
Tripathi, D., Meghani, K., & Mahajan, S. (2014). Financial Performance of Axis Bank and Kotak Mahindra Bank in the post reform era: Analysis on CAMEL model. Economics and Applied Management Research, ISSN, 2349-5677.
Varghese, T. (2016). Evaluating performance of a service cooperative bank: An application of camel model. Indian Journal of Finance, 10(3), 7-27.
Wijaya, J. H., Utanti, E. M., & Mohd Saudi, M. H. (2020). Effect of Bank Health Level (Using Rgec Method) on Profit Growth. International Journal of Psychosocial Rehabilitation, 24(2).
Zainuddin, Z., & Djaelani, Y. (2018). Applying Risk Profile, Good Corporate Governance, Earning and Capital (RGEC) Method To Predict the Bank Health (Case Study on Pt. Bank Tabungan Negara). ACCOUNTABILITY, 7(02), 16-32.
How to Cite
Copyright (c) 2022 International research journal of management, IT and social sciences
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Articles published in the International Research Journal of Management, IT and Social sciences (IRJMIS) are available under Creative Commons Attribution Non-Commercial No Derivatives Licence (CC BY-NC-ND 4.0). Authors retain copyright in their work and grant IRJMIS right of first publication under CC BY-NC-ND 4.0. Users have the right to read, download, copy, distribute, print, search, or link to the full texts of articles in this journal, and to use them for any other lawful purpose.
Articles published in IRJMIS can be copied, communicated and shared in their published form for non-commercial purposes provided full attribution is given to the author and the journal. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
This copyright notice applies to articles published in IRJMIS volumes 7 onwards. Please read about the copyright notices for previous volumes under Journal History.