The Prevention of Financial Distress on Banking Financial Performance in Indonesia

Shendy Amalia, Darwis Agustriana, Neneng Susanti


The banking industry in Indonesia is currently experiencing a big paradigm, where the role of banking is currently experiencing a shift. Threats to bank business performance are also increasing in line with slowing economic growth and potential sectors for bank business. The purpose of this study is to determine the effect of credit risk (Non Performing Financing / NPF), liquidity risk (Financing to Deposit Ratio / FDR), value commposit of Good Corporate Governance, Operational Costs to Operational Income (BOPO), Net Operating Margin (NOM) and Capital Adequacy Ratio (CAR) on Banking Financial Performance in Indonesia. The research method used is descriptive and verification methods, while the statistical analysis method uses multiple regression with eviews 10 software.The population used in this study is banking companies listed on the Stock Exchange for the 2014-2018 period and samples were taken using purposive sampling technique so that the research sample was 32 companies. The data is taken from Bank Indonesia (, Financial Fervices Authority ( and the official website of the bank concerned. Based on the research results, (Non Performing Financing / NPF, GCG, Operations on Operating Income (BOPO) has an influence on temporary banking performance (Financing to Deposit Ratio / FDR), Net Operating Margin (NOM) and Capital Adequacy Ratio (CAR) have no effect. on banking performance.



Full Text:



Abrori, H. (2015). “Comparative Analysis of Bankruptcy Risk in Foreign Exchange and Non-Foreign Exchange Islamic Banks Using the Altman Z-Score Method for the 2010-2012 Period. Semarang.

Ali, M., and Roosaleh, L. (2017). Effect of Net Interest Margin (NIM), Operational Costs on Operational Income (BOPO), Loan to Deposit Ratio (LDR) and Non Performing Loans (NPL) on Return On Assets (ROA) . Journal of Accounting and Financial Research 5 (2): 1377–92

Amelia, RW, & Sunarsi, D. (2020). Effect of Return On Asset and Return On Equity Against Debt To Equity Ratio PadA PT. Kalbe Farma, TBK. Ad Deenar: Journal of Islamic Economics and Business, 4 (01), 105-114

Arbi, Drs. HM Syarif. (2013). Institutions: Banking, Finance and Financing. BPFE. Yogyakarta

Astutik, Praise. (2014). Effect of Bank Soundness According to Risk Based Bank Rating on Financial Performance (Study on Islamic Commercial Banks in Indonesia). Student Scientific Journal of FEB Universitas Brawijaya. Vol. 3, No. 1

Bambang, Jati. (2010). Analysis of the Effect of Third Party Funds, Bopo, Car and Ldr on Financial Performance in the Go Public Banking Sector on the Indonesia Stock Exchange (BEI) (2005-2008 Period). Dynamics of Finance and Banking, May 2010, Page: 125 - 13 Vol. 2, No.2 ISSN: 1979-4878

Bank Indonesia. Bank Indonesia Regulation Number: 13/1 / PBI / 2011 concerning Rating of Commercial Bank Soundness

Bhattarai, Dr. Yuga Raj. (2016). Effect of Non-Performing Loans on the Profitability of Commercial Banks in Nepal. The International Journal Of Business & Management. 4 (6), 435-442. ISSN 2321–8916.

Bringham, EF & Daves, PR. (2003). Intermediate Financial Management with Thomson One. USA: Horcourt College.

Cahyono, Y., Purwanto, A., Sukanta, FNA, Fitriaty, HW, Sihotang, M., & Sugianto, A. (2020). Impact Of Service Quality, University Image And Students Satisfaction Towards Studentloyalty: Evidence From Indonesian Private Universities. Journal of Critical Reviews, 7 (19), 3916-3924.

Darsono and Ashari. (2005). Practical Guidelines for Understanding Financial Statements. Yogyakarta: CV. Andi Offset

Dendawijaya, Lukman. (2005). Banking Management. Jakarta: Ghalia Indonesia

Daughter, Fifit Syaiful. (2013). Effect of Credit Risk and Capital Adequacy Level on Profitability Levels in Banking Companies Listed on the Indonesia Stock Exchange. Thesis Accounting Study Program, Faculty of Economics, Padang State University.

Gujarati. (2012). "Basics of econometrics" book 2, 5th edition. Jakarta: Salemba four

Gumilar, I., Sunarsi, D. (2020). Comparison of financial performance in banking with high car and low car (Study of banks approved in the Kompas 100 index for the period 2013-2017). International Journal of Psychosocial Rehabilitation. Volume 24 - Issue 7

Hantono. (2017). Effect Of Capital Adequacy Ratio (CAR), Loan To Deposit Ratio (LDR), and Non Performing Loan (NPL) to Return On Assets (ROA) Listed In Bangking In Indonesia Stock Exchange. International Journal of Education and Research, 5 (1), 69-80

I Gusti Ayu. Nyoman Abundanti. (2018). The Influence of Capital Adequacy Ratio, Non Performing Loans, Loan To Deposit Ratio Against Return On Aseet, Udayana University Management E-Journal, Vol. 7, No. 5, 2018: 2410-2441

Jasmani, J., Sutiman, S., & Sunarsi, D. (2020). Analysis of the Effect of Prices, Promotions and Products on Purchase Interest Impacts on Consumer Satisfaction of VIVO Brand Mobile Phones in South Tangerang Region. Journal of Ad'ministrare, 7 (1), 73-82.

Julita. (2014). The Effect of Non Performing Loans and Capital Adequacy Ratio on Profitability in Banking Companies listed on the IDX. Jurnal 286 / pdf_7 (downloaded 26 July 2017)

Jumingan. (2006). Financial Statement Analysis, First Edition. Jakarta: Earth Literacy.

Face it, Muamar. "The Effect of CAR, ROA, OEOI, and FDR on the Financial Distress of Islamic Commercial Banks in Indonesia for the 2014-2016 Period". Jakarta. 2017

Lukiastuti, Fitri, (2020). The Influence of Entrepreneur's Personal Characteristics on SMES Performance Mediated by Entrepreneurial Orientation. International Journal of Psychosocial Rehabilitation. Volume 24 - Issue 8

Oktarina, Eka. (2017). Analysis of Bankruptcy Predictions using the Altman Z Score Method at PT BRI Syariah. Thesis Published. Palembang: Faculty of Economics and Business, Raden Patah State Islamic University

Pradata, Y. et al. (2020). Determinants of Savings and Community Loans in Ngawi District, 2010 - 2018 A Macro Economic Approach. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). P. 1506-1517

Rina Adi Kristianti, Yovin. (2014). Factors Affecting Bank Performance: Case of Top 10 Biggest Government and Private Banks in Indonesia in 2004 - 2013. Rev. Integr. Bus. Econ. Res, (4), 371 - 378.

Rosmika, T. et al. (2019). The Role of BRI Bank Medan Perjuangan Unit for Customer's Households, Indonesia. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). P. 363-374.

Sianturi. (2012). Effect of CAR, NPL, LDR, NIM, and OEOI on Banking Profitability. Makassar. Hasanuddin University.

Slamet Riyadi. (2006). Banking Asset and Liability Management. Jakarta: Faculty of Economics, University of Indonesia.

Sugiyono. (2012). Qualitative and Quantitative Research Methods R & D. Bandung: Alfabeta

Sutrisno, Edi. (2009). Human Resource Management First edition. Jakarta: Kencana Prenada Media Group. RI Law No. 10 of 1998 on banking

Tarigan, N. et al. (2020). The Effect of Employee Competence on Increasing Employee Motivation in Sumut Bank of Sharia Unit, North Sumatera. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). P. 858-867.

Wijoyo, H. (2018). Analysis of Construction Contract Income and Expenses Recognition at PT. Wahana Tata Riau. Journal of Computer Science and Business, 9 (2), 2034-2043.

Wilopo, R and David Tjondro. (2011). The Effect of Good Corporate Governance (GCG) on the Profitability and Performance of Banking Company Shares Listed on the Indonesia Stock Exchange. Journal of Business and Banking. Vol. 1, No. 1, pp. 1-14.

Yuliani, (2007). Relationship between Operational Efficiency and Profitability Performance in the Go Public Banking Sector on the Jakarta Stock Exchange, Sriwijaya Journal of Management and Business, Vol. 5, No. 10, December, 2007

Zulhelmi and Ryan Budi Utomo. (2014). The effect of CAR, OEOI, NIM, NPL, LDR on the Profitability of Government-owned Commercial Banks in Indonesia in 2011 - 2013, 95-109.


Article Metrics

Abstract view : 35 times
PDF - 12 times


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.