THE ANALYSIS OF INTERNAL AND EXTERNAL FACTOR TOWARD INDONESIA BANKING INDUSTRY FINANCIAL PERFORMANCE

Abstract

This research will be aiming to find the influence of CAMEL (Capital Adequacy, Assets Quality, Management, Earnings, and Liquidity), inflation rate and the currency rate on the financial performance of the bank in Indonesia's Banking Industry. To achieve the research objective, the researcher will be using the quantitative method and the samples are banks that listed in BUKU IV, and the period is from 2015Q1-2019Q4. There are independent variables of this research, which are Capital Adequacy, Assets Quality, Management, Earnings, Liquidity, Inflation and Currency rate with one dependent variable, which is Financial Performance of Banking Industry in Indonesia. There will be 140 observation data that will be analyze by using five independent analysis method such as descriptive statistical analysis, panel data regression, classical assumption test, multiple regression, and hypothesis testing. Based on the result, Asset Quality, Liquidity, Currency Rate have a significant influence of Financial Performance, meanwhile, based on T-statistic, shows that Liquidity has the most significant influence in Indonesia banking industry performance.