<![CDATA[Bank growth in emerging markets is conventionally attributed to profitability and capital adequacy, yet the accounting regime governing the recognition of credit losses may alter how these determinants operate. This study examines whether the adoption of the expected credit loss standard re-engineers how credit risk, capital adequacy, and profitability translate into bank growth in Indonesia, with re-engineering defined as a change in banks' growth logic rather than in organizational restructuring. Using a balanced panel of commercial banks listed on the Indonesia Stock Exchange across the pre-adoption and post-adoption periods, the study estimates a dynamic model using a two-step system generalized method of moments and decomposes the effect of each determinant by regime. Credit risk emerges as the dominant constraint on growth, and its effect becomes statistically detectable only under the new regime, a result surviving pandemic control and a parsimonious instrument specification. Capital adequacy contributes positively before adoption but is no longer detectable afterward, while profitability shows no significant direct effect in either regime, although its interaction with the regime is significantly negative, indicating a change in its growth relevance after adoption. Growth under the new regime rests on asset quality rather than reported earnings.]]>
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