Determinants of Rural Banks Performance in West Java
Devy M Puspitasari (a*), E Febrian (b), M Anwar (b), R Sudarsono (b)

a)Student of Doctoral Program, Department of Economy and Business, Padjadjaran University Bandung- Indonesia / Lecturer of Faculty of Business and Management, Widyatama University
*devy.mawarnie[at]widyatama.ac.id
b) Lecturer of Department of Economy and Business, Padjadjaran University Bandung-Indonesia

Abstract

This study is to investigate the determinants of rural banks performance in West Java. The method used in this study uses panel data analysis. The data used are secondary data obtained from Bank publication reports during period 2012 until 2016. The population used in this study is rural banks in west java and sample selection based on purposive sampling. The results showed that capital, credit risk, operation efficiency and liquidity risk have significant influence to financial performance, simultaneously. Meanwhile, credit risk and operation efficiency have negative significant influence to financial performance, partially. Credit distribution strategy is needed for sustainability banks and increasing efficiency needs to be continuously considered by management to improve bank performance. This research will be useful in mapping the determinants of rural banks performance in West Java for economic growth, focusing on credit risk, liquidity risk, operation efficiency and capital.

Keywords: risk; financial performance; rural banks

Topic: Impact, Risk and Life Cycle Assessment

Link: https://ifory.id/abstract-plain/X9nLvCPZaBNm

Web Format | Corresponding Author (Devy Mawarnie Puspitasari)