THE APPLICATION OF RISK-BASED BANK RATING ON BANKRUPTCY PREDICTION OF BANKS IN INDONESIA
Journal Title: Jurnal Keuangan dan Perbankan - Year 2017, Vol 21, Issue 2
Abstract
The increase of banking products and services which is more complex will increase the risk to the banks. Therefore, to anticipate the rise of financial difficulties in a bank, the early warning system. This study aimed to find the influence RBBR (Risk Based Bank Rating) ratio’s to predict the bankruptcy of conventional Banks in Indonesia. The ratio of RBBR consisted of risk profile, Good Corporate Governance, profitability, and capital. Independent variables used were NPL, PDN, LDR, GCG, ROA and NIM, and CAR. The dependent variable was bank bankruptcy using a dummy variable. The population of this study was all of the conventional banks in Indonesia. The data was a secondary data taken from the financial report of conventional bank 2011-2015. Technical sampling used was a purposive sampling method with some criteria. The analysis of this study used logistic regression. The result of the study showed that NPL, PDN, LDR, GCG, ROA and NIM, and CAR had no significant influence on the bankruptcy of the bank.
Authors and Affiliations
Evi Sistiyarini, Sudjarno Eko Supriyono
Keywords
Related Articles
- EP ID EP439681
- DOI -
- Views 114
- Downloads 0
Total Factor Productivity and Efficiency Analysis on Islamic Banks in Indonesia
The aims of this study are to measure productivity and efficiency, to analyze factors which affect the level of efficiency and to analyze the correlation between productivity and efficiency of Islamic Banking in Indonesi...
DEBT AND AGENCY CONFLICT IN INDONESIAN MANUFACTURING FIRMS
Companies in Indonesia have shareholders who are not dispersed or in other words, the ownership is only held by one majority shareholder. This study examined the effects of an investment decision on the firm value and th...
RESPON INVESTOR TERHADAP PENGUMUMAN LABA INDUSTRI PERBANKAN YANG MENGHADAPI KOS STICKINESS
This study aimed to analyze the response of investors to the announcement of the financial statements of the banking sector. The population in this study was the banking industry. This study used purposive sampling metho...
Private information, yield volatility, and interaction between groups of investors: Case of Indonesia government bond market
Relation of private information and yield volatility in the relatively low liquid markets such as the Indonesia government bond market is one of the recent important research topics in finance. Because private informatio...
Do Financial Constraints Moderate the Impact of Financing Decisions From Internal-financing Sources on Investment?
To prevent investment growth from 2013 to 2015 from decreasing, the Industrial Ministry provided fiscal incentives to stimulate investment-growth. Nevertheless, the investment growth of manufacturing firms still declined...