<![CDATA[This research aims to determine the effect of bank soundness factors on profitability. The assessment of bank soundness is based on POJK No. 3/POJK.03/2022 regarding the Bank Soundness Rating using the RGEC approach (Risk Profile, Good Corporate Governance, Earnings, and Capital). In this study, these factors are projected through several independent variables: Non-Performing Loan (NPL), Loan to Deposit Ratio (LDR), Good Corporate Governance (GCG), and Capital Adequacy Ratio (CAR). Meanwhile, profitability is projected using Return on Assets (ROA) as the dependent variable. Due to inconsistencies in previous research findings, a moderating variable was included to strengthen the influence of the independent variables on the dependent variable. This study utilizes quasi-moderation, where the moderating variable also has a direct effect on the dependent variable. The sample consists of financial reports from Rural Banks (BPR) and Sharia Rural Banks (BPRS) in Semarang City registered with the Financial Services Authority (OJK) from 2020 to 2024, as well as Bank Soundness Reports from their respective publication websites. Sampling was conducted using the purposive sampling method. While 33 BPR & BPRS were registered with the OJK and met the initial criteria, a total of 61 data points were eligible for analysis. Data were processed using Microsoft Excel and SPSS 22. The analytical method employed is Moderated Regression Analysis (MRA). The results indicate that NPL has a significant negative effect on ROA, while other variables do not show a significant impact. Consequently, BPR & BPRS need to closely monitor their NPL levels to maximize profitability.]]>
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