PENGARUH FAKTOR INTERNAL DAN EKSTERNAL TERHADAP PROFITABILITAS BANK PEREKONOMIAN RAKYAT SYARIAH (BPRS) DI PULAU JAWANIM.: 22108020087Ikmal NurazisauthorThis study aims to analyze the effect of internal and external factors on the profitability of Islamic Rural Banks (BPRS) in Java during the 2020–2024 period. Profitability is proxied by Return on Assets (ROA), while internal factors include Non-Performing Financing (NPF), Capital Adequacy Ratio (CAR), and total assets, and external factors consist of inflation and Gross Regional Domestic Product (GRDP). This study employs a quantitative approach using panel data regression analysis with the Random Effect Model (REM). The results indicate that partially, NPF has a negative effect on profitability, while CAR and total assets show mixed results. Meanwhile, inflation and GRDP as external factors also demonstrate inconsistent effects on ROA. Simultaneously, all independent variables are found to influence the profitability of BPRS. These findings provide an empirical contribution to the development of Islamic finance research and serve as a basis for management and regulators in formulating strategies and policies to improve performance and maintain the stability of Islamic banking, while also enriching the literature on signaling theory and agency theory in the context of Islamic banking.332.1 Banks/Bank, Perbankan2026-05-13UIN SUNAN KALIJAGA YOGYAKARTA;FAKULTAS EKONOMI DAN BISNIS ISLAMThesis