<![CDATA[This study aims to examine the effects of profitability (ROA), capital adequacy (CAR), and credit risk (NPL) on financial sustainability (Net Interest Margin/NIM) at 14 conventional banks classified as KBMI 3 and 4 and listed on the Indonesia Stock Exchange for the period 2022-2025. Using a descriptive-verificative quantitative method via panel data regression (Fixed Effect Model based on Panel EGLS Cross-section weights), the analysis results indicate that all three independent variables simultaneously have a highly significant impact on financial sustainability. Partially, profitability has a positive and significant effect, demonstrating that profit-generating efficiency strengthens the stability of the bank's margin. This study also reveals an empirical anomaly where credit risk actually has a positive and significant effect, representing the success of these giant banking entities in implementing risk-based pricing strategies by widening interest rate margins as compensation for the rise in non-performing credit risk. Conversely, capital adequacy has a negative and insignificant effect because the average capital ratio in this group of banks is already excessively high (over-liquid), so its function has shifted to merely serving as a risk buffer rather than as the primary driver of margin growth.]]>
Copyrights © 2026
