Internal Financial Determinants of Profitability: Evidence From Rural Banks in Indonesia

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This research shows how financial determinants affect profitability in rural banks, indicating efficiency is crucial.

BOPO significantly decreases ROA, showing operational efficiency is vital for profitability.
The study finds CAR, NPL, LDR, and CR collectively explain 88.03% of ROA variation.
Panel data regression analysis was applied, confirming the negative impact of BOPO on return on assets.
The results highlight the need for improved cost control and liquidity management in rural banking.

Arnanto et al. (2025) studied this question.

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