2. LITERATURE REVIEW
The study of bank performance was implemented worldwide due to pressure from the global economic crisis, creating a need for a detailed review and pre-emptive measures in order to maintain the banking sector performance. Among those measures, financial ratio analysis is the most favored method of evaluating bank performance. A world-wide group of researchers, such as Haron (2004), Kuppusamy (2010), Tarawneh (2006), Chantapong (2003), Botosan (1997) and Selvavinayagam (1995) analyzed performance levels of banks by using the ratio of profitability, risk and solvency, and liquidity. In addition, Akhter (2011) and Samad (2004) used nine financial ratios, including profitability, liquidity risk, and credit risk to measure bank efficiency and performance. Furthermore, Dzeawuni and Tanko (2008) stressed that certain criteria must be considered in measuring performance, namely asset quality, profitability, liquidity, risk management and management competency. However, based on Wu, Gaunt, and Gray (2010), researchers are still trying to determine the best group of variables besides the typical financial analysis.