ItemBook Chapter

Determining the most important indicators affecting the failure risk of conventional and sharia rural banks

Title
Determining the most important indicators affecting the failure risk of conventional and sharia rural banks
Creator
Rani, Lina Nugraha; Cahyono, Eko Fajar; Irfan, Mohammad; Rusmita, Sylva Alif
Description
This study identifies key variables influencing the risk of failure in Indonesia's Conventional and Sharia Rural Banks (BPR and BPRS) and proposes strategies to mitigate these risks. Using the Analytical Network Process (ANP) method, the study engaged 11 respondents, including banking practitioners from Conventional and Islamic Commercial Banks, Rural Banks, Islamic Rural Banks, and academics. Data were analyzed with Super Decision software and Excel. Results reveal four critical variables: 1) macroeconomic, 2) microprudential, 3) macroprudential, and 4) bank internal variables. The welfare aspect of macroeconomic variables emerged as the most significant, followed by the liquidity indicator in microprudential variables and the internal resilience indicator in macroprudential variables. These findings guide strategies to enhance banking performance and reduce failure risks. Regulators and the government should prioritize macroeconomic welfare indicators to strengthen the banking system and address factors contributing to BPR and BPRS failures. 2025, IGI Global Scientific Publishing. All rights reserved.
Source
Insights in Banking Analytics and Regulatory Compliance Using AI;pp.127-146
Date
01-01-2025
Publisher
IGI Global
Coverage
Rani L.N., Universitas Airlangga, Indonesia; Cahyono E.F., Universitas Airlangga, Indonesia; Irfan M., Christ University, Bengaluru, India; Rusmita S.A., Universitas Airlangga, Indonesia
Rights
Restricted Access; Hardcopy may be available in the library
Relation
ISBN: 979-833730211-9; 979-833730209-6;
Format
online
Language
English
Type
Book chapter

Citation

Rani, Lina Nugraha; Cahyono, Eko Fajar; Irfan, Mohammad; Rusmita, Sylva Alif, “Determining the most important indicators affecting the failure risk of conventional and sharia rural banks,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 18, 2026, https://archives.christuniversity.in/items/show/24529.

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