<![CDATA[Rural banks play an important role in supporting local economic activity; however, their financial performance is highly sensitive to capital adequacy, credit risk, and liquidity conditions. This study examined the effects of the Capital Adequacy Ratio (CAR) and Non-Performing Loans (NPL) on the financial performance of PT BPR Kerta Raharja (Perseroda), with the Loan to Deposit Ratio (LDR) as a moderating variable during the 2018–2025 period. A quantitative explanatory research design was employed using a saturated sampling technique involving 32 quarterly financial reports. Data were analyzed using descriptive statistics, Pearson correlation analysis, time-series diagnostics, hierarchical regression, and Moderated Regression Analysis with Newey–West heteroskedasticity and autocorrelation-consistent (HAC) standard errors. The results showed that the full model was jointly significant and explained 58.83% of the variation in Return on Assets (ROA). CAR had a positive but statistically insignificant effect, while NPL had a negative but statistically insignificant effect at the mean LDR level. LDR had a significant negative direct effect on ROA. The CAR×LDR interaction was insignificant, indicating that LDR did not moderate the relationship between CAR and ROA, whereas the NPL×LDR interaction was positive and significant, confirming that LDR moderated the relationship between credit risk and ROA. The study concluded that liquidity conditions played a more influential role in shaping the effect of credit risk on bank profitability than capital adequacy. Therefore, integrated credit quality and liquidity management are essential for maintaining sustainable financial performance.]]>
