Rural Banks Stability Index: The Case of Bali

DOI

10.2991/aebmr.k.211124.061How to use a DOI?

Keywords

Financial crisis; Banking stability; Rural bank stability index

Abstract

Banking stability is variable need to be concerned in order to avoid financial crisis, especially for countries whose financial structure is dominated by banking institutions. Many researchers are interested in developing the banking stability index, but few specifically develop the rural banks stability index. This study aims to develop the rural banks stability index in the case of rural banks in Bali, Indonesia. The latent variable of banking stability was measured using four components, namely capital, asset quality, profitability and liquidity. The indicators used to measure the stability’s components are adjusted to the characteristics of rural banks and existing regulations. The results showed that the Rural Banks Stability Index (RBSI) was between 0.35 – 0.44. Based on stability’s cut-off point of 0.2765, it can be concluded that the stability of rural banks in all areas of Bali during the study period is stable.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Fridayana Yudiaatmaja
AU  - Wayan Bagia
AU  - Nengah Suarmanayasa
AU  - Made Suci
PY  - 2021
DA  - 2021/11/25
TI  - Rural Banks Stability Index: The Case of Bali
BT  - Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
PB  - Atlantis Press
SP  - 430
EP  - 436
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211124.061
DO  - 10.2991/aebmr.k.211124.061
ID  - Yudiaatmaja2021
ER  -