A Comparative Analysis of the Financial Health of Bank Aceh Before and After Its Conversion to a Sharia Bank Using the RGEC Method (2012-2021)

Abstrak

This study aims to assess and understand the financial health of Bank Aceh following its transformation into a Sharia-compliant bank in 2016. The study employs statistical testing using time-series data derived from Bank Aceh's annual financial reports—covering three years before and after the Sharia conversion. Data were analyzed using the RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) method, in accordance with Bank Indonesia Circular Letter No. 13/24DPNP of 2011 regarding the assessment of bank health. There was an increase in the Non-Performing Financing (NPF) and Financing to Deposit Ratio (FDR), especially starting in 2016—right after the Sharia conversion. In contrast, Return on Assets (ROA) and Return on Equity (ROE) declined in the later years, particularly during the COVID-19 pandemic. The Good Corporate Governance (GCG) and Capital Adequacy Ratio (CAR) indicators, however, did not exhibit significant changes before and after the conversion.