Tri-Factor Analysis of Financial Sustainability: ROA, Firm Size, and NPL in Rural Banks in Riau Province

Hanafi, Imam
Hidayat, Hidayat
Pratama, Dani

Management Studies and Entrepreneurship Journal (MSEJ)
Vol. 5 No. 2 (2024): Management Studies and Entrepreneurship Journal (MSEJ)

This research aims to identify the factors influencing Financial Sustainability in Rural Banks in Riau Province. The study assesses whether Return On Assets (ROA), Firm Size, and Non-Performing Loan (NPL) have an impact on Financial Sustainability in Rural Banks in Riau Province. The population of this study consists of 34 Rural Banks, with purposive sampling techniques selecting a total of 23 Rural Banks that meet the sample criteria. Data analysis is conducted using Ordinary Least Squares through EViews 12, utilizing panel data spanning from 2018 to 2022. The research findings indicate that Return On Assets (ROA), Firm Size, and Non-Performing Loan (NPL) significantly influence Financial Sustainability in Rural Banks in Riau Province.