Social Science Studies
Vol. 3 No. 6 (2023): (Issue-November)

The Effect of CAMELS Ratio on Banking Distress in Private Banking Sector Listed on The IDX Period 2020 – 2022

Vandana, Adelia Dinda Ayu (Unknown)
Kautsar , Achmad (Unknown)



Article Info

Publish Date
30 Nov 2023

Abstract

This study aims to determine the effects of CAMELS ratio analysis (Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity to Market Risk) on Banking Distress in the private banking sector that is listed on the Indonesian Stock Exchange (IDX) for the period 2019 – 2021. The object of this research is 31 private banks, and the data collection technique uses a purposive sampling technique. The data source needed in the research is secondary data, which is annual financial statements from Indonesian Stock Exchange. This research is conclusive on causality by using the Logistic Regression Analysis technique on IBM SPSS tools version 29 software. The result shows that the variables Capital Adequacy Ratio (CAR) and Non-Performing Loans (NPL) have a positively significant effect on Banking Distress, while Operating Expenses to Operating Income (BOPO), Net Profit Margin (NPM), Return on Assets (ROA), Loan to Deposit Ratio (LDR), and Interest Rate Risk (IRR) have no significant effect on Banking Distress. This study can be a valuable reference for banking sectors in avoiding indicators leading to banking distress. Future researchers can develop the elements from this research, including a more expansive period of interval, carrying more varied independent variables from external factors, and using other more accurate models.

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Journal Info

Abbrev

sss

Publisher

Subject

Education Social Sciences Other

Description

Social Science Studies is a journal that makes it easy for anyone who wants to publish scientific papers in an intensive manner in research. This journal also aims to bridge the gap between textual and contextual approaches to Social Sciences; So, the journal invited the meeting points of several ...