Differences Between Liquidity, Capital, and Profitability of Small and Middle Rural Banks

Abstract

This research aims to examine the differences between liquidity, capital, and profitability of small and middle rural banks (BPR). This quantitative research with a comparative research type compares small rural banks (BPR) and medium rural banks (BPR) in West Nusa Tenggara Province. Data for this research are secondary data from rural banks’ financial reports and other publications. The data were analyzed with a comparative test (comparative analysis), namely the 2-sample independent t-test distinguishing the characteristics based on total assets, then compared in terms of liquidity, profitability, and capital. The result of the previous research with at-test revealed that the 29 rural banks in West Nusa Tenggara have two categories, i.e., small rural banks (23 banks) and middle rural banks (6 banks). The results of this study show there are no differences in bank soundness between small and middle rural banks in terms of liquidity, capital, and profitability.