BUMN Commercial Bank is a market leader with a market share of 34.95%. The global economic crisis in 2008 caused the impact of slowing economic growth in Indonesia until 2016. This slowing economic growth led to a decline in the performance of the BUMN Commercial Bank. The weakening of banking performance caused the credit growth and profit of the state-owned banks to decline. If this condition persists then the sustainability of BUMN Commercial Bank will be threatened, thus the possibility of BUMN Commercial Bank experiencing financial distress will increase.
This research uses two types of variables, the independent variables (consisting of financial ratios proxied in the ratio of CAR, NPL, NIM, BOPO and LDR) and the dependent variable (financial distress). The purpose of this research is to determine the effect of CAR, NPL, NIM, BOPO, LDR on the fianancial distress of BUMN Commercial Bank either simultaneously or partially.
BUMN Commercial Bank in 2012-2016 was selected as a research population. The purposive sampling technique was used for sampling and obtained samples as much of 4 companies with a five-year period every three months, resulting 80 data to be observed. The Model analysis in this research is logistic regression by using software SPSS 20.
The results showed that the variables CAR, NPL, NIM, BOPO and LDR simultaneously affect the financial distress. Partially NPL, NIM, and BOPO variables don't have effect on financial distress, while CAR variable has significant negative has effect to financial distress and LDR variable significant positf has effect on financial distress.
In order to avoid financial distress, management is advised to maintain high CAR value and to minimize LDR increment. For investors, if they want to invest in BUMN Commercial Bank they should avoid companies that has low CAR and LDR is too high because it indicates the company is in financial distress.
Keywords : Financial Distress, CAR, NPL, NIM, BOPO, LDR.