The failed bank is the bank in insolvency, condition or in unability to pay pertraining the bank operation, in which the mentioned bank ought to be closed liquidated or in the contrarily the bank has to be built out.

For more than one decade running for Indonesia banking (since 1988) a fast growing amount of bank experiences has occurred, unfortunately some of the banks had to be closed because of the failure of the bank its own to manage the proper operation in prudential banking principles Indonesia central bank tries to maintain the amount of banks with the optimal bank quality,

Many bank failure causes research has done by the researchers in difference countries. From some researches there are frameworks causes the bank facing failure problems which among of them are economic crisis, runs a huge cash drawing by the costumers in the short period of time and internal financial problems in the bank. Most of the bank failure causes researches aim is to equip all parties (central bank. Government and public) for early warning of bank failure