Al-Mashrafiyah : Jurnal Ekonomi, Keuangan, dan Perbankan Syariah
Vol 6 No 2 (2022): Oktober

Methods for Measuring Potential Bankruptcy of Sharia Banking

Mukminati Ridwan (Universitas Muhammadiyah Makassar)
Gagaring Pagalung (Universitas Islam Negeri Alauddin Makassar)
Muslimin Kara (Universitas Islam Negeri Alauddin Makassar)



Article Info

Publish Date
30 Oct 2022

Abstract

This study aims to examine the methods that can be used to measure bankruptcy in sharia banking. This study is also to examine the potential for bankruptcy which is most effectively used. The method used is descriptive qualitative method with a literature approach. The results showed that of the six bank measurement methods, all of them could not be used to measure bankruptcy in Sharia banking without being modified first. This is because all methods have constituent elements based on interest and taxes. All methods can be used when eliminating the elements of interest and taxes. However, based on the research, it was found that the most widely used method to measure bankruptcy is the Altman Z-Score model, but the Springate S-score is the most effective in detecting the bankruptcy of Sharia banking in Indonesia.

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Journal Info

Abbrev

almashrafiyah

Publisher

Subject

Economics, Econometrics & Finance

Description

This journal contains writings of research results or theoretical studies related to economics, finance and sharia banking.This journal is published by the Department of Islamic Banking Faculty of Economics and Islamic Business UIN Alauddin Makassar. This journal is published in 2 (two) editions ...