DETERMINANTS OF FINANCIAL DISTRESS RURAL BANK IN INDONESIA: A LOGIT APPROACH
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Solid State Technology Volume: 63 Issue: 3
Abstract
This study aims to investigate determinants of financial distress rural banks in Indonesia
using logit approach. 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 Indonesia and sample selection based on purposive sampling
evidence East Java. The results showed that capital, profitability and productivity have
significant influence to financial distress bank. Rural banks should maintain adequate
capital, increase profits and maintain credit growth in order to avoid financial distress. This
study is useful to determine the determinants of rural bank financial distress in Indonesia by
using the logit approach, adopting the Altman variable and adding the credit risk variable.
Description
Keywords
Risk, Financial Distress, Rural Banks