Money Supply and NPL Drive Rural Banks' Profitability in Indonesia.
The study looked at factors influencing the Return on Assets (ROA) of Rural Banks in Indonesia. They used a method called Error Correction Model to analyze the data. The findings showed that the Amount of Money Supply and Non Performing Loan had a significant impact on ROA in the long and short term, while General Capital Reserves had a significant effect on ROA in the long term only. Consumptive Interest Rates and Working Capital Interest Rates did not have a significant impact on ROA in both the long and short term.