Authors :
Rusli; Zaenal Abidin
Volume/Issue :
Volume 7 - 2022, Issue 10 - October
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3SDW0nn
DOI :
https://doi.org/10.5281/zenodo.7238267
Abstract :
Financial Services Authority (OJK) in
Indonesia has overruled licenses to 59 rural banks for the
2016-2021 period, of which 33 or 55.9% are located in
Java. This study aims to formulate a rural bank
bankruptcy prediction model through financial
indicators included in the RGEC Model. Quantitative
analysis for processing data include descriptive statistics,
independent t-test and logistic regression. The number
of secondary data amounted to 66 (33 Bankrupt rural
bank and 33 Healthy rural bank). The results showed
that the variables of Non-Performing Loan (NPL),
Return On Asset (ROA) and Return On Equity (ROE)
had a significant effect on the probability of rural bank
bankruptcy while the Allowance for Write-off of
Productive Assets (PPAP), Net Interest Margin (NIM)
and The Capital Adequacy Ratio (CAR) had no
significant effect. Simultaneously, the entirety of
independent variables affects the probability of
bankruptcy of the rural bank.
Keywords :
BPR, Bankruptcy, Logistic Regression.
Financial Services Authority (OJK) in
Indonesia has overruled licenses to 59 rural banks for the
2016-2021 period, of which 33 or 55.9% are located in
Java. This study aims to formulate a rural bank
bankruptcy prediction model through financial
indicators included in the RGEC Model. Quantitative
analysis for processing data include descriptive statistics,
independent t-test and logistic regression. The number
of secondary data amounted to 66 (33 Bankrupt rural
bank and 33 Healthy rural bank). The results showed
that the variables of Non-Performing Loan (NPL),
Return On Asset (ROA) and Return On Equity (ROE)
had a significant effect on the probability of rural bank
bankruptcy while the Allowance for Write-off of
Productive Assets (PPAP), Net Interest Margin (NIM)
and The Capital Adequacy Ratio (CAR) had no
significant effect. Simultaneously, the entirety of
independent variables affects the probability of
bankruptcy of the rural bank.
Keywords :
BPR, Bankruptcy, Logistic Regression.
