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Determinants and Prediction Model for Rural Bank Sustainability in Indonesia Post-COVID-19

Year: 2025

Type: article

Abstract: This study identifies the risk determinants that affect the sustainability of rural bank in Indonesia after the Covid-19 pandemic. Explicitly forming a rural bank sustainability prediction model. Utilizing logistic regression analysis, the research identifies seven statistically significant variables influencing rural bank sustainability. The study introduces three models, with Model 3 demonstrating the highest accuracy in predicting rural bank sustainability, both in-sample and out-of-sample. Robustness tests further validate Model 3's reliability. The findings underscore the need for rural banks to enhance their business management strategies, particularly in areas of liquidity, loan growth, and business efficiency, to ensure long-term sustainability.

Source: Sustainability

DOI: 10.3390/su17167207

Authors: Devy Mawarnie Puspitasari, Jacky Chin, Sunita Dasman

Institutions: Mercu Buana University, Universitas Pelita Bangsa

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $2,896