INDICATORS OF BANK DEFAULT: EMPIRICAL STUDY OF RURAL BANKS IN INDONESIA

Authors

  • Devy M. Puspitasari Lecturer, Faculty of Economics and Business, Widyatama University Bandung- Indonesia Author
  • Amelia Maharani Lecturer, Faculty of Economics and Business, Widyatama University Bandung- Indonesia Author
  • Artika Students, Faculty of Economics and Business, Widyatama University Bandung- Indonesia Author
  • Lidia R. Prastiawati Students, Faculty of Economics and Business, Widyatama University Bandung- Indonesia Author
  • Riza A.F. Anwar Students, Faculty of Economics and Business, Widyatama University Bandung- Indonesia Author
  • Taufiq Maulana Students, Faculty of Economics and Business, Widyatama University Bandung- Indonesia Author

Keywords:

default risk, bank default, rural banks

Abstract

This study aims to know the indicators of Bank Default, empirical study of rural bank in Indonesia. The method used in this study uses logit. The data used are secondary data obtained from Bank publication reports during period 2014 - 2018. The population used in this study is rural banks in East Java and sample selection based on purposive sampling. The results found that rural banks need to pay attention to capital adequacy and non-performing loans. High non-performing loans can reduce bank profitability so that profits will also decrease. If this condition continues, it will erode capital. This research will be useful to find out indicators of bank soundness which are reflected in financial ratios to ensure the sustainability of bank business, especially rural banks by incorporating macroeconomic indicators.

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Published

2022-01-30

How to Cite

Puspitasari, D. M., Maharani, A., , A., Prastiawati, L. R., Anwar, R. A., & Maulana, T. (2022). INDICATORS OF BANK DEFAULT: EMPIRICAL STUDY OF RURAL BANKS IN INDONESIA. CENTRAL ASIA AND THE CAUCASUS, 23(1), 4401-4408. https://ca-c.org/CAC/index.php/cac/article/view/434

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