Effect of Financial Distress Ratio Banking Company in Indonesia Period 2011-2015

Abstract

This study aims to analyze the influence of financial ratios proxied with Non Performing Loans (NPLs), Loans to Deposit Ratio (LDR), Operational Costs to Operating Income (BOPO), and Return On Assets (ROA) to financial distress. The data used in this research is obtained from the Annual Publication Financial Report of commercial bank period 2011-2015.The population in this study were 35 commercial banks registered in the Directory of Bank Indonesia in the category of Private Foreign Exchange National Banks. After passing the stage of purposive sampling, obtained 16 (distress). The statistical method used to test the research hypothesis is logistic regression method.results showed that all ratios simultaneously (simultaneously) have an effect on financial distress but partially have no effect. The NPL ratio has no significant positive effect, LDR ratio has no significant positive effect, BOPO ratio has negative effect is not significant and ROA ratio has negative effect is not significant.

Keywords: NPL, LDR, BOPO, ROA, Financial Distress, Logistic Regression