The aims of this research is to compare and define the rating of financial
performances of banks by measuring four factors: risk, governance, earnings and
capital ratio or better known as RGEC method of Indonesian state-owned banks
with Indonesian foreign-based banks. The data was secondary data in a form of
financial ratios such as: non-performing loan, loan to deposit, return on assets, net
interest margin, and capital adequacy; and also corporate governance composite
score. All of the data gathered from annual statements of each banks and further
processed using RGEC method by referring to Indonesian central bank’s standard
regulation.
Based on the result of this research, both groups of banks has considerably fair
condition of loan to deposits ratio and Indonesian state-owned banks has higher and
more stable score of RGEC than Indonesian foreign-based banks which means that
Indonesian state-owned banks has better financial performance.