Bank Efficiency Key to Boosting Profits in Indonesia's Commercial Banks!
The study looked at how different factors like operating efficiency, asset quality, capital, and liquidity affect the profitability of commercial banks in Indonesia from 2006 to 2009. They found that operating costs, net interest margin, and non-performing loans have a significant impact on the return on assets of these banks. Overall, these factors can explain 72.4% of the variation in bank profitability during the study period.