Asset quality impacts bank performance in Indonesia, management efficiency key.
The study looked at what factors affect how well banks in Indonesia perform. They used data from 25 banks over 10 years and found that having good quality assets and efficient management helps banks do better. However, having enough capital, liquidity, and a growing economy didn't seem to make a big difference. The researchers suggest that bank managers should focus on improving asset quality, managing loans carefully, and keeping a good balance between what they own and what they owe.