Bank Bankruptcy Prediction Model with Risk-based Bank Rating (RBBR): BUKU1 and BUKU2 Categories

Sintha Lis

2019

Abstract

This study aims to obtain empirical evidence that the risk approach through the Risk-Based Bank Rating variables is an appropriate source to be used as a predictor of banks problem. The model formed is expected to have the right model accuracy to be applied in Indonesia as one of the early warning tools. The research variables are Risk Profile, GCG, Earning, and Capital by using risk ratios and financial ratios. The research population is bank financial statements in the period from 2005 - 2014 with bank categories BUKU 1 and 2. Econometric models with logistic regression analysis techniques to find the variables that influence bank bankruptcy. The results of the study with logistic regression testing found that bank prediction models with BUKU 1 and BUKU 2 categories partially and simultaneously showed that from all the research variable indicators tested supported the hypothesis and had a significant effect on the 5% accurate level in predicting the financial condition of a bank, this is evident from the 74.07% backtesting and Rsquare results.

Paper Citation

in Harvard Style

Lis S. (2019). Bank Bankruptcy Prediction Model with Risk-based Bank Rating (RBBR): BUKU1 and BUKU2 Categories. In Proceedings of the 4th International Conference of Vocational Higher Education - Volume 1: ICVHE, ISBN 978-989-758-530-2, pages 520-525. DOI: 10.5220/0010700700002967

in Bibtex Style

@conference{icvhe19,
author={Sintha Lis},
title={Bank Bankruptcy Prediction Model with Risk-based Bank Rating (RBBR): BUKU1 and BUKU2 Categories},
booktitle={Proceedings of the 4th International Conference of Vocational Higher Education - Volume 1: ICVHE,},
year={2019},
pages={520-525},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010700700002967},
isbn={978-989-758-530-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference of Vocational Higher Education - Volume 1: ICVHE,
TI - Bank Bankruptcy Prediction Model with Risk-based Bank Rating (RBBR): BUKU1 and BUKU2 Categories
SN - 978-989-758-530-2
AU - Lis S.
PY - 2019
SP - 520
EP - 525
DO - 10.5220/0010700700002967