Faktor-Faktor yang Mempengaruhi Financial Distress

Financial distress in the banking sector is an important concern because financial difficulties at individual banks may affect broader financial stability. This study examines the effects of economic growth, exchange rates, profitability, and credit risk on financial distress in banks listed on the Indonesia Stock Exchange from 2015 to 2025. The study uses a quantitative approach and secondary data obtained from banks’ annual reports and official publications. A purposive sampling method was applied to select 33 banks, yielding 363 bank-year observations. Financial distress is measured using the Banking Z-score, for which a higher value indicates greater financial stability and a lower risk of financial distress. Profitability is measured by return on equity (ROE), while credit risk is measured by the non-performing loan (NPL) ratio. The data are analyzed using a random-effects panel regression model estimated through Panel EGLS in EViews 13. The results indicate that economic growth and profitability have positive and statistically significant relationships with the Banking Z-score, whereas credit risk has a negative and statistically significant relationship. The exchange rate has a negative but statistically insignificant relationship with the Z-score. The four independent variables are jointly significant, and the model explains 37.64% of the variation in the dependent variable. These findings suggest that stronger economic growth and profitability are associated with greater banking stability, while higher credit risk is associated with lower stability. Exchange rate movements do not show a statistically significant relationship in the estimated model.