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COMPARISON OF BANKRUPTCY RATES OF SHARIA BANKS AND CONVENTIONAL BANKS USING ALTMAN Z-SCORE METHOD IN INDONESIA
Ulumuddin Nurul Fakhri(a*), Saiful Anwar(b), Rifki Ismal(c), Ascarya(d)

a. Mahad Aly An-nuaimy, b. STIE Ahmad Dahlan, c,d. bank Indonesia.


Abstract

The purpose of this research is to know the position of financial performance and position of bankruptcy level of sharia banking, as well as compare it with conventional banking. This research will be very useful to provide early warning to the sharia banking in managing the company, and can innovate in developing the company. Early warning is needed by the parties involved in the company to anticipate the development of business in the future. The analysis of this research using First, the method of Approach Regulation of the Financial Services Authority no. 8 / POJK.03 / 2014 which refers to Central Bank of Indonesia regulation no. 9/1 / PBI / 2007 to know the position of financial performance. Second, the Altman Z-Score model to find out the bankruptcy positions of sharia and conventional banking. This study resulted in the finding of the position of the financial performance level and the position of bankruptcy level of sharia and conventional banking. The final result of this research is the performance of banking syairah is not better than conventional banking financial performance, because the position of Islamic banking performance level is ranked 3, while conventional banking is ranked 1. The risk bankruptcy sharia bank CBGB 2 is in the position of the gray zone, while conventional banking CBGB 2 is in the safe zone. These results prove that the prediction results using Altman Z-Score in accordance with the use of the method of Approach Regulation of the Financial Services Authority.

Keywords: Islamic Banking; Conventional Banking; CBGB (Commercial Bank Group of Business); financial performance Altman Z-Score;

Topic: International Conference of Islamic Economic and Financial Inclusion

Link: https://ifory.id/abstract/ActQhkfwKxF3

Conference: The 3rd International Conference on Sustainability and Innovation (ICoSI 2019)

Plain Format | Corresponding Author (Ulumuddin Nurul Fakhri)

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