Proceedings of the 2nd International Conference on Social Science, Humanities, Education and Society Development (ICONS 2021)

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Research on the Profitability of Rural Banks in Indonesia: A Comparative Study

Authors
Roberto Akyuwen*
Master of Management, Universitas Pancasakti Tegal, Indonesia
*Corresponding author. Email: akyuwenroberto@gmail.com
Corresponding Author
Roberto Akyuwen
Available Online 5 January 2022.
DOI
10.2991/assehr.k.220101.033How to use a DOI?
Keywords
BOPO; BPR; CAR; Comparison; LDR; NPL; Profitability; ROA
Abstract

BPRs’ size, in terms of asset and capital, is substantially smaller than the commercial banks. However, they are playing a significant role in supporting micro and small enterprises. The total number of BPRs today is more than 1,500 units and spread all over Indonesia. One of the most important performance indicators of BPR is profitability. This research is aimed at comparing previous researches on factors affecting the profitability of BPRs. In total, 23 types of research from 2014 to 2021 are gathered and compared. The comparison will embrace the use of analysis tools, dependent and independent variables, and relationships pattern among those variables. The result shows that a multiple linear regression was the most frequent tool of analysis used by researchers in analyzing factors affecting BPR’s profitability. The other tool of analysis with a relatively limited utilization was a panel data regression and path analysis. The return on assets (ROA) was identified as the most intensive dependent variable used in representing BPR’s profitability. Meanwhile, the capital adequacy ratio (CAR), loan to deposit ratio (LDR), non-performing loan (NPL), and operating income to operational expenses ratio (BOPO) were the most frequent independent variables used by various studies.

Copyright
© 2022 The Authors. Published by Atlantis Press SARL.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2nd International Conference on Social Science, Humanities, Education and Society Development (ICONS 2021)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
5 January 2022
ISBN
978-94-6239-507-7
ISSN
2352-5398
DOI
10.2991/assehr.k.220101.033How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press SARL.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

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TY  - CONF
AU  - Roberto Akyuwen
PY  - 2022
DA  - 2022/01/05
TI  - Research on the Profitability of Rural Banks in Indonesia: A Comparative Study
BT  - Proceedings of the 2nd International Conference on Social Science, Humanities, Education and Society Development (ICONS 2021)
PB  - Atlantis Press
SP  - 220
EP  - 229
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.220101.033
DO  - 10.2991/assehr.k.220101.033
ID  - Akyuwen2022
ER  -