Econometric Modeling and Analysis of Factors Affecting The Efficiency of Commercial Banks

 This article examines the factors affecting the efficiency of commercial banks using econometric modeling. Return on Equity (ROE) is used as the main performance indicator. The model includes macroeconomic factors such as inflation, GDP growth, and interest rates, as well as microeconomic indicators including loan portfolio size, liquidity, and capital adequacy. The results of the econometric analysis show that microeconomic factors have a stronger impact on bank efficiency compared to macroeconomic factors. The findings can be used to improve banking performance and enhance management practices.