ABSTRACT
Banks peer group is a group of banks that have common conditions. The plotting of a bank peer group is based on the homogeneity of the banks condition relative to the other banks. The purpose of this study was to test the bank peer group model formulated by Sugiarto using cross section data per December 2016. To simulate the performance of the bank peer group model, Bank Jasa Jakarta will be used as an anchor bank. The test was carried out on several variables; Non-Performing Loans, Return on Assets and Return on Equity, all of which have an important role in bank sustainability. Data was taken from the website of the Indonesia Financial Services Authority. The test results indicated that the bank peer group model was a reliable model since the results obtained were able to represent the actual conditions. The test results showed that it was possible to establish an objective bank peer group determination model using a statistical point of view and estimation in the form of data distribution was also possible to do. The decision making regarding the conclusions made are based on a calculated probability.
