PENERAPAN MODEL ALTMAN DALAM MEMPREDIKSI KESULITAN KEUANGAN PADA BEBERAPA BANK PERKREDITAN RAKYAT DI KOTA MALANG

This study aims to predict financial distress in several Rural Banks (BPR) in Malang City during the 2021–2023 period using the Altman Z-Score model. According to Altman's benchmark, a Z-Score below 1.81 indicates the distress zone (high risk), 1.81–2.99 is the grey zone (moderate risk), and above 2.99 is the safe zone (low risk). The analysis shows that most BPRs fall into the distress zone, such as BPR Putera Dana, which recorded a Z-Score of -3.6884 in 2021 and only improved to 0.7529 by 2023. BPR Gunung Arjuna consistently remained in the safe zone, reaching a Z-Score of 5.2317 in 2023. These conditions are mainly caused by weak capital structure, low asset efficiency, and minimal retained earnings. The Altman Z-Score model proves effective as an early warning tool for management, shareholders, and regulators such as the Financial Services Authority (OJK) in ensuring the sustainability of BPR.