Abstract:The research aims to investigate the dynamics among rural banks’ capital, macroeconomic variables and microconomic variables. Macroeoconomic variable consists of infllation and interest. Microeconomic variables consist of loan to deposi ratio, nonperforming loans, and return on assets. The data are excerpted from OJK and BI’s website. The data are monthly data extending from January 2010 until May 2021. The testing method used is vector error correction model (VECM). The results show that rural banks’ capital … Show more
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