Proceedings of the First Annual Conference of Economics, Business, and Social Science, ACEBISS 2019, 26 - 30 March, Jakarta, Indonesia

Research Article

Financial Ratio Analysis to Predict Financial Distress on Islamic Bank

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  • @INPROCEEDINGS{10.4108/eai.26-3-2019.2290684,
        author={Intan P.S. Hasibuan and Nurhasanah  Nurhasanah and Mahroji  Mahroji and Mas Rangga Cili},
        title={Financial Ratio Analysis to Predict Financial Distress on Islamic Bank},
        proceedings={Proceedings of the First Annual Conference of Economics, Business, and Social Science, ACEBISS 2019, 26 - 30 March, Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ACEBISS},
        year={2020},
        month={2},
        keywords={capital adequacy ratio financing to deposite ratio non performing financing financial distress},
        doi={10.4108/eai.26-3-2019.2290684}
    }
    
  • Intan P.S. Hasibuan
    Nurhasanah Nurhasanah
    Mahroji Mahroji
    Mas Rangga Cili
    Year: 2020
    Financial Ratio Analysis to Predict Financial Distress on Islamic Bank
    ACEBISS
    EAI
    DOI: 10.4108/eai.26-3-2019.2290684
Intan P.S. Hasibuan1,*, Nurhasanah Nurhasanah1, Mahroji Mahroji1, Mas Rangga Cili2
  • 1: Universitas Mercu Buana, Indonesia
  • 2: Politeknik APP Jakarta
*Contact email: intanabigailzrh@yahoo.com

Abstract

The purpose of this study was to determine the effect of Capital Adequacy Ratio, Financing to Deposite Ratio and Non Performing Financing on Financial Distress. The object of research is 11 Islamic Commercial Banks registered in the Financial Services Authority (OJK) and Bank Indonesia (BI), with data from 2013 to 2017. The research was conducted with quantitative methods, to test the effect of independent variables on the dependent variable. Analysis of the data used is descriptive statistical analysis and hypothesis testing in the form of multiple linear regression tests, and assisted by SPSS software. The results of this study indicate that the Capital Adequacy Ratio, and Financing to Deposite Ratio each have no significant effect on financial distress, while Non Performing Financing has a significant positive effect on Financial Distress.