Financial Foreign Exchange Bank Analysis Through Strategic and Risk Management Approach

Abstract

This paper discusses how the financial performance of foreign exchange bank in Indonesia that can be improved through the strategy and approach to risk management approach to measuring and analyzing the financial performance during the period 2003-2007. Concentrate on the discussion of the variable performance indicators, namely the banking is Capital Adequacy Ratio (CAR), Return on Equity (ROE), Loan to Deposit Ratio (LDR) and Return on Asset (ROA). The average ROA is 4.61%, the lowest ROA of -7.03% is owned by Century bank ROA and the highest 99.62% owned by the bank ifi. The average ROE is 14.76%, with the lowest ROE of -14.46 ifi owned by the bank and the highest ROE 26.90% owned by Commerce Bank. LDR average is 70.14%, the lowest LDR of 28.00% is owned by Century and the bank's highest LDR 209.90% owned by Bank Artha Graha International. The average CAR is 19.09%, with the lowest CAR of 9.95% is owned by the bank's highest CAR Naga Bank and 25.09% owned by Bank Bumi Arta. Less successful foreign bank in its performance due to increase assets and capital is not managed optimally which can be seen from the ROA, ROE, LDR, CAR is not in accordance with the standards required by Bank Indonesia, that is ? 2% (ROA), ? 12% (ROE ), 85% - 110% (LDR), ? 12% (CAR). Changes can be made by foreign banks is to take advantage of the excess of assets held, so that they can increase profit earnings, as well as the performance in general anticipate bad debts in the previous period to be more careful in allocating the excess of assets owned.