ABSTRACT
The performance rating of banks operating in Indonesia is determined by quantitative and qualitative aspects. Infobank Research Bureau (2015) classifies banks operating in Indonesia in four categories: very good, good, quite good, and not good. In this study, the performance rating of banks is classified into two groups, namely very good and not very good. Banks that are classified as good, quite good, and not good according to the Bureau of Research Infobank are combined into a group of banks with the rating not very good. This research was conducted to find variables that become significant determining factors for the performance rating of banks operating in Indonesia. The study was conducted using secondary data obtained from Infobank (2015). Overall 99 banks were evaluated. The research variables were Composite Risk Management Profile (RMP_CG), Good Corporate Governance Composite Profile (GCG_CG), Non-Performing Loan (NPL), Net Interest Margin (NIM), Core Capital (CoreCap), Return on Assets (ROA), Return on Equity (ROE), Profit Growth (PrGrowth), and Ratio of Operating Expenses to Operating Income (BOPO). Tests were performed using discriminant analysis. The results obtained indicate that performance classification of banks are affected by variables RMP_CG, NPL, NIM, CoreCap, ROA, ROE, PrGrowth, and BOPO. The accuracy of the predictions of the model is 88.9%. The accuracy of the model categorized is high, so the discriminant model obtained is valid and can be used to classify the performance rating of banks operating in Indonesia.
