Bank Performance Linked to Loan Quality and Expenses, Study Finds.
The study analyzed the financial performance of 13 small banks in Indonesia from 2014 to 2017. They looked at factors like loan quality, interest margins, and expenses to see how they affected the banks' profitability. The results showed that loan quality, interest margins, and expenses had a significant impact on the banks' return on assets, while the loan-to-deposit ratio and capital adequacy ratio did not.