<![CDATA[In carrying out intermediation activities to generate profits, banks face various factors influencing their financial performance, encompassing both macroeconomic and bank-specific factors. This study aims to analyze the impact of macroeconomic and bank-specific factors on profitability, measured by Return on Assets (ROA). The sample in this study includes banks listed on the Indonesia Stock Exchange (IDX) with a minimum core capital of 6 Trillion rupiah during the period Q1 2018 to Q4 2024. This study uses a dynamic panel data regression model with the Generalized Method of Moments - System (GMM) approach to address endogeneity problems and provide more accurate estimations. The research findings indicate that Inflation, BI Rate, and Net Interest Margin (NIM) have a significant positive effect on ROA. Conversely, Credit Growth (CG) and Operating Expenses to Operating Income (BOPO) have a significant negative effect on ROA. Meanwhile, Non-Performing Loans (NPL), Capital Adequacy Ratio (CAR), and Loan to Deposit Ratio (LDR) do not have a significant effect on ROA. The results of this study can be utilized by regulators and stakeholders to optimize banking performance and health amidst fluctuating macroeconomic conditions.]]>
Copyrights © 2026
