Predicting selected Philippine rural bank failure using logistic approach: A projection model

Recently, there has been a significant number of rural banks that have failed which is alarming because of the possible adverse effects it can bring to the agricultural community and the banking system. Financial ratios and their review has been popularly used as a way to predict bankruptcy by various authors and researchers. In particular, the researchers used logistic regression first used by Ohlson, to come up with a prediction model. The researchers were able to determine six significant ratios among the eleven that were used in the study. The researchers also conducted an interview of officers of the Bangko Sentral ng Pilipinas and the Philippine Deposit Insurance Corporation as part of their data collection method and supplement to the statistical analysis