Proceedings of the 1st International Conference on Business, Law And Pedagogy, ICBLP 2019, 13-15 February 2019, Sidoarjo, Indonesia

Research Article

Determination of Bankometer and RGEC Models to Predict Financial Distress on Sharia Banks in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.13-2-2019.2285981,
        author={Laely Aghe Africa},
        title={Determination of Bankometer and RGEC Models to Predict Financial Distress on Sharia Banks in Indonesia},
        proceedings={Proceedings of the 1st International Conference on Business, Law And Pedagogy, ICBLP 2019, 13-15 February 2019, Sidoarjo, Indonesia},
        publisher={EAI},
        proceedings_a={ICBLP},
        year={2019},
        month={10},
        keywords={bankometer rgec financial distress sharia banks},
        doi={10.4108/eai.13-2-2019.2285981}
    }
    
  • Laely Aghe Africa
    Year: 2019
    Determination of Bankometer and RGEC Models to Predict Financial Distress on Sharia Banks in Indonesia
    ICBLP
    EAI
    DOI: 10.4108/eai.13-2-2019.2285981
Laely Aghe Africa1,*
  • 1: STIE Perbana
*Contact email: laely.aghe@perbanas.ac.id

Abstract

Banking is a collection of several functions of the Bank, which is a financial institution that has financial assets as its wealth and has profit motives and social. Banking institutions also do not rule out the possibility of experiencing financial distress; financial distress is declining phases that happen before liquidation. This research aimed to analyze the Bankometer, and RGEC Model can be used to predict financial distress on Sharia Banks in Indonesia. This research is a quantitative study using 110 financial report data and using logistic regression for analyzing the data. The results show that the Bankometer Model can be used to predict financial distress and RGEC model can be used are the variable NPL, GCG, ROA, and CAR. This research implies that it can be used by Sharia banking determining policies for an early warning before the bankruptcy of a company to avoid liquidation.