Strength of Financial Sustainability in Bali Regional People’s Economic Bank

This study aims to identify factors influencing the financial sustainability of rural credit banks (BPRs) using goal-setting theory. Data was collected from 242 directors and commissioners at 129 BPRs using structured questionnaires and verified financial reports. Analysis used structural equation modeling (SEM) with a partial least squares (PLS) approach. The results indicate that risk management, organizational culture, financial technology, and credit restructuring have a significant positive influence on financial sustainability. These findings highlight the importance of internal organizational factors and strategic governance in maintaining the long-term financial sustainability of BPRs. This study is limited to the context of BPRs in Bali and focuses on cross-sectional data, which may limit the generalizability of the findings. Future research could be expanded to other regions or utilize longitudinal data. This study offers actionable insights for BPR stakeholders, policymakers, and financial regulators in formulating strategies to strengthen financial sustainability and resilience in small-scale banking. By ensuring financial sustainability, rural banks (BPR) can continue to support local communities, increase access to financial services, and contribute to regional economic stability. Practically, the findings offer actionable insights for BPR stakeholders, regulators, and policymakers to strengthen governance mechanisms and support BPR resilience in a competitive and evolving financial ecosystem.