Abstract
This study employs to identify the determinant factors of the potential bankruptcy of National Private Commercial Banks listed on the Indonesia Stock Exchange. The type of data is secondary data derived from the company's financial statements from 2015-2017. The population of this research is all companies of National Private Commercial Banks listed on the Indonesia Stock Exchange with the purposive sampling technique of sampling 40 companies. The analytical method used to identify the potential for bankruptcy is used the modified Altman Z Score model for non-manufacturing companies in developing capital markets. To identify the determinants of potential bankruptcy is used the Factor Analysis method. Based on the analysis, it is obtained that the potential bankruptcy of the company as a sample has a value of Z Score> 2.60 (including safe zone or healthy category). Then based on the results of analysis factors from the 10 variables studied only 9 variables that found the requirements as a determinant of potential bankruptcy, namely: CAR, NPL, ROA, NIM, BOPO, LDR, CR, ECTA, and TATG variables are divided into 2 factors, namely factor 1 which consists of variables CAR, NIM, LDR, CR, ECTA, and TATG which are named Capital variables and Liquidity, while the one that includes factor 2 consists of variables NPL, ROA, and BOPO which are given variable names Asset Quality and Earning.
 Keywords: Potential bankruptcy; National Private Commercial Banks; and Factor Analysis; and Altman Z Score model
Highlights
Background of StudyGood financial performance banking can be known by analyzing financial performance by calculating financial ratios or called financial statement ratio analysis (Keown, 2012)
Factor 2 consists of variables Non-Performance Loan (NPL), Return on Assets (ROA), and BOPO named Variable Asset Quality and Earning
Based on the results of research and discussion of 40 banking companies that were the object of research by identifying the possibility of potential bankruptcy using the modified Z Score model (Altman et al, 2014), the Z Score obtained were as follows; 1) The companies had Z Score value greater than 2.60 with the company being in safe zone, which meant that the company was a good financial performance and the potential for bankruptcy in the future was very small
Summary
Background of StudyGood financial performance banking can be known by analyzing financial performance by calculating financial ratios or called financial statement ratio analysis (Keown, 2012). Internal factors originate from within the company itself, which is related to the company's financial performance such as the liquidity ratio, solvency and profitability and profitability are the result of decisions and policies that are not fixed in the past and management failure to do something when needed. These various internal factors, among others, are too large several troubled loans, inefficient management, lack of capital and abuse of authority and fraud. The asset quality category consists of RORA (Earning Before Income Tax / Productive Assets) and OBSEQ ratios
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