Abstract

This study aims to find a prediction model of financial difficulties in the Indonesian banking sector, especially in Conventional Go-Public Banks. The criteria for assessing financial difficulties are divided into two panels, namely the median panel and the mean or average panel. The financial performance assessed in this study is Loan to Deposits Ratio (LDR),Non-Performing Loans (NPL), Operational Costs and Operating Income (BOPO), Return on Assets (ROA) and Capital Adequacy Ratio (CAR). The research sample amounted to forty-five (45) Conventional Go-Public Banks that operating in Indonesia in the period 2013-2017 and selected by using purposive sampling method. Logistic regression is used to analyze the data. The results of this study found that the NPL ratio in the median panel becomes a significant variable in predicting financial difficulties in Conventional Go-Public Banks in Indonesia, while the LDR, CAR and NPL ratios in the mean panel were significant variables in predicting financial difficulties in Conventional Go-Public Banks in Indonesia.