Open AccessDeterminant Return on Assets on Rural Banks in Indonesia
Author(s) -
Amanah Amanah
Publication year - 2021
Publication title -
jejak (jurnal ekonomi dan kebijakan)/jejak
Language(s) - English
Resource type - Journals
eISSN - 2460-5123
pISSN - 1979-715X
DOI - 10.15294/jejak.v13i2.26458
Subject(s) - return on assets , weighted average return on assets , loan , working capital , return on capital employed , rate of return , business , term (time) , economics , econometrics , financial system , finance , profitability index , human capital , capital formation , financial capital , economic growth , physics , quantum mechanics
The problem in this study is that the Trend of Return on Assets (ROA) in Rural Banks tends to decrease. The author uses a quantitative descriptive analysis method and the analytical tool used is the ECM (Error Correction Model), the aim of which is to determine what factors influence the Return on Assets (ROA) of Rural Banks in Indonesia. The findings empirically show that the Amount of Money Supply in the long term had a significant effect on the Return on Assets (ROA) of Rural Banks. Whereas in the short term, no significant effect on ROA, General Capital Reserves in the long term have a significant effect on Return on Assets (ROA), while in the short term have no significant effect on ROA, Non Performing Loan (NPL) in the long term and short term effect significant to Return on Assets (ROA), Consumptive Interest Rates in the long term and short term have no significant effect on Return on Assets (ROA), and Working Capital Interest Rates in the long term and short run have no significant effect on Return on Assets ( ROA) Rural Banks in Indonesia