Prediction of Financial Distress in Shariah Banking in Indonesia Before and During The Pandemic and Influencing Factors

Abstract

This study aims to predicts financial distress before and during the pandemic and to analyze the influence factors on the financial distress of sharia commercial banks in Indonesia. The methods used are the Altman model, Zmijewski, Grover. The results show that Altman predicts six sharia commercial banks in the grey zone before the pandemic and five during the pandemic. Zmijewski predicts two sharia commercial banks in distress zone before the pandemic and five during the pandemic. Grover predicts all sharia commercial banks will be in the safe zone. NOM has a significant negative effect in all models, CAR has a significant negative effect in first and second models, GDP has a significant negative effect in the second until fifth models, BOPO has a significant positive effect in all models. Size and inflation do not affect significantly financial distress.