BANK FINANCIAL PERFORMANCE USING CAMEL RATIO ANDMARKET VALUE TOBIN’S QOFBANKING SUB-SECTOR LISTED ATINDONESIAN STOCK EXCHANGE

Abstract

Bank is essentially an entitiesthat raise funds from the public in the form of savings and channel them to thepublic in the form of credit. Bank function as an intermediary institution has made a bank has a strategicposition in the economy. However, bank need to be able to evaluate themselves whether they are able to continueperforming their function or not and how they are fare in the market. There are various ways for bank to analyzebank performance, and one of them through Bank Financial Ratios. The study is descriptive and datacollectedwere analyzed and presented according to the data of Banking Companies Sub Sector Listed in Indonesia StockExchange from year 2011 to 2015. There are four companies studied, namely: BMRI, BBRI, BBCA and BBNIwhich is the biggest banks in Indonesia. The results of the study shows CAMEL ratio of CAR, NPL, ROA, ROE,LDR that generally good performance and market value ratio of Tobins’Q resulted in market see the bankingcompanies stock as undervalued.

Keywords:CAMEL, Bank, Financial Performance, Tobin’s Q