Health Assessment Banking

In accordance with Bank Indonesia Regulation Number 6/10/PBI/2004 dated 12 April 2004 on the Rating System for Commercial Banks (State Gazette of the Republic of Indonesia Year 2004 Number 38, Supplement to Statute Book No. 4382) The Bank shall evaluate soundness Bank on a quarterly basis.Relative to this assessment needs to be provision for Commercial Banks in a Bank Indonesia Circular Letter to the main provisions as follows:1. With the increasing complexity of the business and risk profile, the Bank needs to identify problems that may arise from the operations of the Bank. For banks, the final assessment of the condition of the Bank may be used as one tool in setting business strategy in the future, while for Bank Indonesia among others, are used as a means of establishing andBank strategy implementation supervision by Bank Indonesia.2. Bank Soundness is a qualitative assessment of various aspects affecting the condition or performance of the Bank through assessments on capital, asset quality, management, earnings, liquidity and sensitivity to market risk. An assessment of these factors through quantitative and or qualitative assessment after considering the elements of judgment based on materiality and significance of the assessment factorsand the influence of other factors such as the condition of the banking industry and the national economy.II. EVALUATION FACTORS1. Assessment of the Bank include an assessment of the factorsCAMELS consisting of:a. Capital (Capital)Assessment of quantitative and qualitative approaches capital factorAmong other things done through an assessment of the componentsas follows:1) the adequacy of compliance with the Minimum Capital Requirement (CAR) to the applicable regulations;2) the composition of capital;3) future trends / projections CAR;4) earning assets compared to the Bank's capital;5) the ability of the Bank to maintain the need for additional capital from profits (retained earnings);6) Bank capital plan to support business growth;7) access to sources of capital, and8) the financial performance of its shareholders to increase the capital of the Bank