Do The Financial Reports of Troubled Banks Meet the Qualitative Characteristics of Financial Reports?
DOI:
https://doi.org/10.17509/jaset.v16i2.61634Keywords:
Qualitative characteristics of financial statements, Troubled banks, Bank financial ratiosAbstract
This study aims to analyze whether the financial reports of
Rural Banks (BPR) that are included in Banks Under
Recovery/BDP (Before called the Bank under Intensive
Supervision/BDPI and the Bank under Special
Supervision/BPDK) meet the qualitative characteristics of
financial statements. This study uses the financial
statement ratio of the BPRs whose business permit is
revoked by the Financial Services Authority up to 2023. The
samples used are 47 banks from 127 banks that had been
revoked. Meanwhile, a healthy bank sample was 171 BPRs
in 2016-2019. Correlation analysis is used in this study. The
results of this study concluded that the troubled BPRs
financial statements did not meet the qualitative
characteristics of financial statements. Only one in 47 BPRs
meets the qualitative characteristics of financial
statements. This was evidenced by comparing the financial
ratio of the troubled bank with a healthy bank, such as
NPLs, BOPO, LDR, CAR, and ROA showed negative results
(different directions) or the level of relationship of more
than one level. The author suggests the regulator so that
financial ratios in the financial statements that indicate the
bank's health can be used as the initial data analysis of BPRs
governance implementation.
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