ANALYSIS FACTORS THAT INFLUENCING CAPITAL ADEQUACY RATIO ON THE GENERAL BANK IN INDONESIA

Abstract

The purpose of this research to analyze the influence Net Interest Margin and Reserves Requirement to Capital Adequacy Ratio on the General Bank. The data used secondary data from Indonesian Banking Statistics what is published by Indonesian Central Bank. Analyze technique use multivariate regression with first order condition. The result, as partial Net Interest Margin and Reserves Requirement have the positive influence to Capital Adequacy Ratio. As the simultaneously, Net Interest Margin and Reserves Requirement have significant influence to Capital Adequacy Ratio. The contribution of Net Interest Margin and Reserves Requirement to Capital Adequacy Ratio on General Bank is 25.6 percent.