The Relationship of Lending, Funding, Capital, Human Resource, Asset Liability Management to Non-Financial Sustainability of Rural Banks (BPRs) in Indonesia
The Relationship of Lending, Funding, Capital, Human Resource, Asset Liability Management to Non-Financial Sustainability of Rural Banks (BPRs) in Indonesia

Summary/Abstract: This study examines the relationship between lending, funding, capital, human resource, asset liability management and non-financial sustainability of Rural Bank (BPR) in Indonesia. This study was conducted to determine the extent of BPRs in Indonesia because this microfinance institution plays an important role in the development of the Indonesian economy. The objective of the study is to investigate the relationship of the independent variables with the financial and non-financial sustainability of the BPRs in Indonesia. The overall set of measures is constructed to evaluate the practice of BPRs in Indonesia. Data from 92 BPRs in Indonesia were collected and processed using SPSS to determine the relationship. The result demonstrates that the relationship of lending, funding, human resource and asset liability management to non-financial sustainability is significant. Whereas the relationship between capital and non-financial sustainability is not significant. The result of this study has practical implications for the Indonesia regulators to establish and revise regulations and standards tailored to the Indonesian unique background. The future direction of this research can be developed by changing or adding the variables and broaden the scope of research.

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