Do The Financial Reports of Troubled Banks Meet the Qualitative Characteristics of Financial Reports?

Hasan Ashari, Trinandari Prasetyo Nugrahanti

Abstract


This study aims to analyze whether the financial reports of Rural Banks (BPR) that are included in Banks Under Intensive Supervision (BDPI) and Bank Under Special Supervision (BPDK) or non-performing banks meet the qualitative characteristics of financial statements. In this study, the problem banks that were sampled were 31 BPR during the BDPI/BDPK period from 100 BPRs whose business licenses had been revoked by the bank supervisory authority until 2019. Meanwhile, the healthy banks that were sampled were 171 BPR in the 2016-2019 period. Data analysis in this study used correlation analysis. The results of this study conclude that in general financial reports from the troubled BPRs that do not meet the qualitative characteristics of financial reports, it is only one of the 31 BPRs that meet the qualitative characteristics of financial reports. It is because the results of comparison from the financial ratios of non-performing banks with healthy banks, such as NPL, BOPO, LDR, KPMM, and ROA show results in different directions or different levels of the relationship level that more than one level. The author suggests to the regulator that the ratios show the soundness of the bank submitted by BPR to OJK to confirm the results of the analysis on the implementation of BPR governance.


Keywords


Qualitative Characteristics of Financial Statements, Troubled Banks, Bank Financial Ratios

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DOI: https://doi.org/10.17509/jaset.v16i2.61634

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