This study is exploring impact of macroeconomics and bank specifics factor on nonperforming loans (NPLs) and banking sustainability performance (BSP) particularly in financial performance, with Indonesian commercial banking system back ground. The Study period is over the year 2004 to the year 2013. The objective is to perform statistic examining and analyzing to find out the impact of macroeconomic factors which comprise of gross domestic product (GDP); Bank Indonesia interest rate (BI rate); inflation; exchange rate; unemployment. Then bank specific indicators, which comprise of total assets; loan deposit ratio (LDR); capital adequacy ratio (CAR); credit growth. The conclusion of this study is confirmed that macroeconomic and bank specific factors have a significant impact on NPLs and BSP.
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