Analysis of Banking Health with the Risk Based Bank Rating Method and Bankometer (Study on Syariah Commercial Banks in Indonesia 2013-2107)
Muhammad Ichsan Hidayat, Farida Titik Kristianti
Telkom University
Abstract
Banking is a financial institution that focuses on profit and also social, but on the other side the bank can also collapse and there are indications of bankruptcy. One way to predict is to use one of the models to determine financial distress. Syariah Banks are banks that run business activities based on the principles of Islamic law. Syariah Bank in Indonesia have very significant asset increases since initial operating at 2005. Bank Indonesia recommended a system for a prediction model called Risk Based Bank Rating (RBBR) while IMF recommended a system called Bankometer. The Objective of this research is to analyze The RBBR model and Bankometer model can use to determine financial distress and comparison result between two models. Sample of this research are 11 listed Syariah Bank in Indonesia that announced financial report on website from 2013 to 2017. This research implication is for management of the company, Investor, Customer, Government and all communities in considering to choose Syariah Bank that related to financial distress.
Keywords: Financial Distress, Bankometer, RBBR, Syariah Bank
Topic: Financial Technology