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Analysis of the Effect of Capital, Net Interest Margin, Credit Risk
and Profitability in the Implementation of Banking
Intermediation
(t!dy "n Regional #e$elopment Bank All "$er Indonesia In %&'% (

*err+ ,-.mad Bu-.or+
E/0I1,S E-onomi-s 2ollege( Jl. !**. Mustopa No. $1 Bandung )012)( Indonesia
E-mail 3 a-.mad45u-.or+6+a.oo.-om

Abstract
1.e aim of t.is stud+ was to anal+7e t.e fa-tors t.at affe-t t.e implementation of 5an8ing intermediation in-lude
2apital( Net Interest Margin( 2redit 9is8 and !rofita5ilit+. 1.e met.ods used are des-ripti:e and :erifi-ati:e(
wit. se-ondar+ data from finan-ial statements all o:er 2' Indonesian 9egional ;e:elopment Ban8s as a resear-.
o5<e-t=s units. ;ata anal+sis te-.ni>ue is t.e multiple linear regression( .+pot.esis testing w.ile using t - test to
e?amine t.e effe-t of partial :aria5les and test - @ to e?amine t.e effe-t of :aria5les simultaneousl+ wit. a
signifi-an-e le:el of 5 A. Based on t.e results it is -on-luded t.at partial NIM and 9%, .a:e positi:e and
signifi-ant effe-ts on B;9. N!B .as positi:e effe-t 5ut no signifi-ant effe-t to B;9. C.ile t.e 2,9 .as
negati:e effe-t 5ut no signifi-ant effe-t to B;9. Simultaneousl+ 2,9( NIM( N!B and 9%, signifi-antl+
influen-e t.e le:el of influen-e of B;9 wit. )0.5 A w.ile t.e remaining 59.5A t.oug.t to 5e influen-ed 5+
ot.er :aria5les not e?amined in t.is stud+.
)ey*ords3 2apital ,de>ua-+ 9atioD 2,9D Boan to ;eposit 9atioD B;9D Net Interest MarginDNIMD Non-
!erforming BoansD N!BsD 9eturn on ,ssetsD 9%, .

'+ Backgro!nd
Ban8 as t.e depositor+ finan-ial institution .olds a :er+ important role in t.e e-onom+ of a -ountr+. Ban8
fa-ilitates t.e interests of sa:ers wit. 5orrowers t.roug. produ-ts and finan-ial ser:i-es it offers. ,sides from
t.ese a-ti:ities( 5an8s -an also pro:ide ser:i-es t.at fa-ilitate pa+ments traffi-. It -an not 5e denied t.at t.e role
of 5an8s w.i-. -an 5e used as a tool in setting monetar+ poli-+ is also t.e primar+ sour-e of -redit to most small
5usinesses and indi:iduals( w.i-. will ultimatel+ affe-t t.e e-onomi- growt. of a -ountr+ /o-.( 2000D Bu-.or+(
200'".1.e role t.at finan-ial institutions .a:e pla+ed in finan-ial intermediation and growt.( namel+ to mo5ili7e
sa:ings and allo-ate t.em to t.e most produ-ti:e and growt.-promoting a-ti:ities Ma.ran(2012". Ban8ing pla+s
su-. a ma<or role in -.anneling funds to 5orrowers wit. produ-ti:e in:estment opportunities. 1.is finan-ial
a-ti:it+ is important in ensuring t.at t.e finan-ial s+stem and t.e e-onom+ run smoot.l+ and effi-ientl+E
Mis.8in F Ea8ins( 200'". 1.e -om5ined effe-ts of finan-ial intermediation( w.i-. are t.e e?ternalit+ and inter-
se-toral fa-tor produ-ti:it+ differential effe-ts on e-onomi- growt. are signifi-antl+ positi:e and do not appear
to depend on t.e stage of e-onomi- de:elopment attained M.%. %dedo8un( 199#".
Intermediation fun-tion performed 5+ 5an8s t.roug. t.e pur-.ase of surplus funds from e-onomi- units
5usiness se-tor( go:ernment and indi:idual G .ouse.old" to 5e distri5uted to defi-it e-onomi- units *empel et
al.( 199)". In ot.er words( a finan-ial intermediation is t.e di:ersion of funds a-ti:ities from sa:ers ultimate
lenders" to t.e 5orrower t.e ultimate of 5orrowers". Implementation of finan-ial intermediation in 5an8ing -an
5e seen from t.e 5an8Hs a5ilit+ to transform t.e sa:ings are re-ei:ed primaril+ from .ouse.old e-onomi- units
into -redit or loans for -ompanies and ot.er parties to ma8e in:estments in 5uildings( e>uipment and ot.er
-apital goods 9ose( 2002".
In t.e -onte?t of IndonesiaHs e-onom+( t.e dominant role of 5an8s remains as -ompared to ot.er
finan-ial institutions. 1.is -an 5e seen from t.e mar8et s.are asset indi-ators of finan-ial industr+ t.roug. t.e
mont. of June 201$. Ban8s still dominate t.e mar8et s.are( w.i-. is e>ual to I#.2) A( followed 5+ '.1$A for
finan-e -ompanies( '.15 A for insuran-e -ompanies( 5.12 A for so-ial insuran-e -ompanies( 2.I0 A for pension
funds( 1.09 A for -orporate se-urities and mortgage of 0.5I A . Info5an8 9esear-. Bureau( 201$". Espe-iall+
wit. regard to 5an8ing assets in Indonesia( total assets to t.e position on Jul+ 201$( w.i-. .as rea-.ed 9p
).510(29 5illion in:ested largel+ in t.e form of loans of 9p $.0)5(5 1 trillion or 'I.52A Espe-iall+ wit. regard to
5an8ing assets( total assets to t.e position on Jul+ 201$( w.i-. .as rea-.ed 9p )510.29 5illion in:ested largel+ in
t.e form of loans of 9p $0)5.51 trillion or 'I.52 A Ban8 Indonesia( 201$". 1.e ratio of -redit to gross domesti-
produ-t J;!" of t.e Indonesian 5an8ing in 2011 onl+ amounted to 29.'A( is still relati:el+ low -ompared to
12#.'A for Singapore( 11I.$A for Mala+sia( #1.2A for 1.ailand and $1.)A for t.e !.ilippines. Indonesian
5an8ing t.oug. still relati:el+ low 5ut -ontri5ution of 5an8ing pla+ an important role in fa-ilitating t.e growt. of
t.e Indonesian e-onom+ Info5an8 9esear-. Bureau( 201$".
9egional ;e:elopment Ban8 B!;" in Indonesia was esta5lis.ed wit. t.e intent to pro:ide funding for
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21
t.e implementation of lo-al de:elopment efforts in t.e framewor8 of National ;e:elopment Baw no. 1$ 19'2".
Bater in t.e de-ree of Ministr+ of Internal ,ffair No. '2 in 1999( affirmed t.at t.e prin-ipal tas8 of de:eloping
t.e e-onom+ and t.e B!; is mo:ing regional de:elopment( w.ile t.e fun-tion is3
1" !romoting t.e -reation of t.e le:el of e-onomi- growt. and regional de:elopment in order to impro:e t.e
standard of li:ing of t.e people
2" 1.e .older or a regional treasur+ and finan-ial management areas
$" %ne sour-e of re:enue.
*owe:er up to t.is time( in -arr+ing out its duties and fun-tions of t.e B!; still fa-es se:eral pro5lems( among
w.i-.3 limited -apitalD 5rand awareness -ommunit+ to B!; is still :er+ lowD >ualit+ of ser:i-e does not meet t.e
e?pe-tations of so-iet+ D >ualit+ and .uman resour-es -ompeten-ies .a:e not 5een standardi7edD inno:ation and
produ-t de:elopment is still limited D networ8s offi-e ser:i-es is still limited D not optimal strategi- partners.ipD
stru-ture of pu5li- funding is relati:el+ low D -omposition of t.e produ-ti:e loan portfolio is relati:el+ low( and
not -onsolidate information te-.nolog+ E8o Budiwi+ono ( 2012" .
,s one of t.e -ommer-ial 5an8s( B!; pla+s a :er+ important role in t.e e-onom+( espe-iall+ t.e
regional e-onom+. 1.e role is mainl+ seen .ow wide B!; -an appl+ intermediar+ fun-tion. Intermediation
fun-tion performed 5+ B!; t.roug. t.e pro-ess of pur-.asing t.e surplus funds from e-onomi- units 5usiness
se-tor( go:ernment and indi:idualG.ouse.old" to 5e distri5uted to defi-it e-onomi- units. In ot.er words( a
finan-ial intermediation is t.e di:ersion of funds a-ti:ities from sa:ers ultimate lenders" to t.e 5orrower t.e
ultimate of 5orrowers". %ne -ommonl+ used indi-ator to measure t.e implementation of 5an8ing intermediation(
is t.e ratio of loans to deposits or loans to deposits ratio B;9" *aruna( 2011D Bu-.or+( 200'". 1.e .ig.er t.is
ratio is( t.e 5etter it means t.at t.e 5an8 -ould -arr+ out intermediation fun-tion optimall+.
1.e B;9 a-.ie:ed 5+ t.e B!; to ;e-em5er 2012 is I#( 5IA lower t.an t.e national 5an8s #$.5#A"(
and ot.er groups su-. as state 5an8s I9.#)A"D pri:ate national 5an8s #1.5#A"D non-foreign e?-.ange 5an8s
#2.I$A"D <oint 5an8s 115.'$A" and foreign e?-.ange 5an8s 111.21A" Ban8 Indonesia( 201$". 1.e a-.ie:ed
low B;9 of B!; indi-ated t.at t.e implementation of 5an8ing intermediation 5+ B!; .as not 5een optimal.
1.e not optimal implementation of 5an8ing intermediation 5+ B!; is t.oug.t to in-lude t.e effe-t of t.e 2apital
,de>ua-+ 9atio 2,9"( Net Inerest Margin NIM"( Non !erforming Boan N!B"( and 9eturn on ,ssets 9%,".
Based on t.e p.enomenon a5o:e( t.e pro5lem in t.is resear-. -an 5e formulated into a resear-.
>uestion3 *ow t.e 2,9( NIM( N!B( and 9%, influen-e t.e implementation of 5an8ing intermediationK 1.is
stud+ aims to anal+se t.e fa-tors t.at affe-t t.e implementation of t.e intermediation fun-tion of 5an8s t.at
allegedl+ in-lude t.e effe-t of t.e 2,9( NIM( N!B and 9%,.

%+ ,iterat!re re$ie*
2.1. Definition, role, function and core activity of bank
Ban8 is a finan-ial institution w.ose main a-ti:it+ is re-ei:ing pu5li- deposits . 1.e funds will 5e
dis5ursed in t.e form of loans to -ommunities w.o need t.em. Besides ta8ing deposits and gi:ing loans( 5an8s
also pro:ide ot.er finan-ial ser:i-es.
,--ording to t.e Baw No. I of 1992 and amended 5+ Baw No. 10 of 199# a5out Ban8ing( 5an8s are
5usiness entities t.at raise funds from t.e pu5li- in t.e form of sa:ings and -.annel t.em to t.e -ommunit+ in
t.e form of -redit or ot.er forms in order to impro:e t.e li:ing standard of t.e people.
1.e role of 5an8s in t.e e-onom+ -an 5e e?pressed as L...5an8ing pla+s su-. a ma<or role in -.annelling
funds to 5orrowers wit. produ-ti:e in:estment opportunities( t.is finan-ial a-ti:it+ is important in ensuring t.at
t.e finan-ial s+stem and t.e e-onom+ run smoot.l+ and effi-ientl+E Mis.8in and Ea8ins( 200'". 1.e same is
e?pressed as follows L.....2ommer-ial 5an8s pla+ an important role in fa-ilitating e-onomi- growt.. %n a
ma-roe-onomi- le:el( t.e+ represent t.e primar+ -onduit of @ederal 9eser:e monetar+ poli-+. Ban8s deposit
represent t.e most li>uid form of mone+( su-. t.at @ederal 9eser:e efforts to -ontrol t.e nation=s mone+ suppl+
and le:el of aggregate e-onomi- a-ti:it+ do so 5+ -.anging t.e a:aila5ilit+ of -redit at 5an8s. %n a
mi-roe-onomi- le:el( -ommer-ial 5an8 represents t.e primar+ sour-e of -redit to most small 5usiness and man+
indi:idualsE /o-.( 2000". C.ile ot.er opinions a5out t.e role of t.e 5an8 are as follows3 L... , 5an8 -an 5e
defined in t.e term of3 1" t.e e-onomi-s fun-tion is ser:es( 2" t.e ser:i-es is offers its -ustomer( or $" t.e legal
5asis for its e?isten-e. 2ertainl+ 5an8 -an 5e identified 5+ t.e fun-tions t.e+ perform in t.e e-onom+( t.e+ are
in:ol:ed in transferring funds from sa:ers to 5orrowers finan-ial intermediation" and in pa+ing for goods and
ser:i-esE 9ose and *udgins( 200#"
@or t.e Indonesian 5an8ing 5an8 fun-tions listed in t.e Baw of t.e 9epu5li- of Indonesia No. I of 1992
and amended 5+ Baw No. 10 of 199# on Ban8ing( 5an8s are 5usiness entities t.at raise funds from t.e pu5li- in
t.e form of sa:ings and -.annel t.em to t.e pu5li- in t.e form of loans or ot.er forms in order to impro:e t.e
li:ing standard of t.e people. In ot.er parts of t.e a-t( t.e 5an8 also pro:ides a :ariet+ of ser:i-es and
-on:enien-es t.at in essen-e is to meet t.e needs of people of all finan-ial transa-tions. 1.e -ore a-ti:ities of a
5an8 as a finan-ial institution t.at are alwa+s asso-iated wit. t.e transa-tions or finan-ial a-ti:it+ t.at o--urred
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in t.e -ommunit+ are3
1 intermediation ta8ing deposits and lending mone+"
2 disintermediation relin>uis.ing t.e intermediar+ de5torG-reditor position( w.ile retaining a M5ro8er= role"
$ -olle-tion and pa+ment s+stem( mone+ transmission
) foreign e?-.ange( foreign trade ser:i-es
5 parti-ipation in t.e mone+ and -apital mar8et 2ade( 199I"

2.2. Definition and factors of affecting banking intermediation
In simple terms t.e role of 5an8s in t.e e-onom+ is to fulfil t.e desire of ultimate 5orrowers and t.e ultimate
lenders. *owe:er( t.e role of 5an8s is a-tuall+ >uite -omple? 5e-ause t.ere are two interests 5eside ot.er
interests t.at must 5e met 5+ a 5an8 and t.at are t.ose of t.e owners and t.e go:ernment regulator". 1.us( a
5an8 must 5e a5le to 5alan-e t.e :arious interests ultimate 5orrowers( ultimate lenders( owners and regulators"
t.at are sometimes different *empel et al.( 199)". Ji:en t.at t.e 5an8ing se-tor is t.e intermediar+ 5etween
t.e parties t.at .a:e t.e e?-ess funds and t.ose w.o need t.e funds( t.e reallo-ation of pu5li- funds .as
important impli-ations for t.e mo:ement of t.e e-onom+ as a w.ole. 1.erefore( t.e role of 5an8s in t.e
e-onom+ is espe-iall+ from t.e e?tent to w.i-. t.e 5an8 -an appl+ its intermediar+ fun-tions. @inan-ial
intermediation is t.e pro-ess of 5u+ing funds from surplus e-onomi- units 5usiness se-tors( go:ernment and
indi:idualG.ouse.old" to 5e distri5uted to defi-it e-onomi- units *empel et al.( 199)". 1.e same is stated 5+
/idwell and !etterson 2000" w.i-. states t.at intermediation is t.e pro-ess of transformation or dire-t
pur-.ases of a -laim wit. a series of -.ara-teristi-s maturit+( denomination" of ;S0s and turn it into a -laim
indire-tl+ 5+ a different set of -.ara-teristi-s to 5e sold to SS0s. Meanw.ile( a--ording to Jardner 2000"(
intermediation is a pro-ess of transformation from se-ondar+ se-urities into primar+ se-urities. !rimar+
se-urities are t.e -laim of indi:iduals( go:ernment and non-finan-ial -ompanies( w.ile t.e se-ondar+ se-urities
are -laims against finan-ial institutions.
1.e implementation of finan-ial intermediation in 5an8ing -an 5e seen from t.e 5an8Hs a5ilit+ to
transform sa:ings re-ei:ed primaril+ from .ouse.old e-onomi- units into -redit or loans for -ompanies and
ot.ers to in:est in 5uildings( e>uipment and ot.er -apital goods 9ose( 2002". 1.e indi-ators -ommonl+ used to
measure t.e e?tent of intermediation 5+ t.e 5an8ing s+stem .as 5een implemented( namel+ 5+ loo8ing at t.e
ratio of loans to deposits 8nown as Boans to ;eposits 9atio B;9". ,n indi-ator to measure t.e wor8ings of t.e
5an8ing intermediation fun-tion is to loo8 at t.e Boan to ;eposit 9atio B;9". ,--ording Bu-.or+ 200'"(
B;9 ratio refle-ts t.e a5ilit+ of 5an8s to e?tend -redit and -olle-t pu5li- funds. 1.e .ig.er t.is ratio is( t.e
5etter it means t.at t.e 5an8 -ould -arr+ out intermediation fun-tion optimall+. &i-e :ersa( t.e lower t.is ratio
means t.e 5an8 in -arr+ing out its intermediar+ fun-tion is not optimal. Some of t.e -auses .a:e not 5een
optimal implementation of 5an8ing intermediation in t.e region( a--ording to resear-. 5+ Ban8 Indonesia is
-aused 5+3 t.e limited aut.orit+ of t.e 5an8 5ran-.es in de-iding loans( t.e effe-t of t.e finan-ial -ondition of
t.e internal 5ran-. of t.e -redit( t.e e?isten-e of alternati:e in:estment of funds( t.e 5usiness -limate in t.e
region( t.e pre-autionar+ prin-iple ,5dulla. and Suseno( 200$". In t.is stud+( t.e aut.ors estimates t.at not t.e
optimal implementation of t.e intermediar+ fun-tion B;9" 5+ B!; regional de:elopment 5an8" is -aused 5+
t.e following fa-tors 3 -apital 2,9"( -redit ris8 N!B" and profita5ilit+ 9%," .

2.2.1. Loan to deposit ratio
,s noted a5o:e t.at t.e B;9 is an indi-ator in t.e measurement of 5an8ing intermediation. ,--ording to t.e
resear-. result Bu-.or+ 200'" implementation of finan-ial intermediation fun-tion gi:e effe-t to 5an8ing
performan-e. 1.is means t.at 5an8s will .a:e good finan-ial performan-e if t.e 5an8 -ould appl+ its
intermediar+ fun-tion optimall+. @or 5an8s in Indonesia( a--ording to Ban8 Indonesia 2ir-ular Better No.
1$G2)G;!N! dated %-to5er 25
t.
( 2011 Su5<e-t 3 &aluation of Be:el 2ommer-ial Ban8 Soundness and t.e -ir-ular
letter No. 15G)1 G ;/M! Ja8arta( %-to5er 1
st
( 201$ Su5<e-t3 2al-ulation of Minimum statutor+ 9eser:ed
;emand ;eposit and 2ompulsor+ ;emand deposit 5+ Boan to ;eposit 9atio in 9upia.. Boan to ;eposit 9atio
.ereinafter referred to as t.e B;9 is t.e ratio of loans to t.ird parties in e?-.ange 9upia. and foreign -urran-+(
e?-luding loans to ot.er 5an8s( t.e deposits w.i-. in-lude demand deposits( sa:ings and time deposits in 9upia.
and foreign -urren-ies( e?-luding inter5an8 funds. 1.erefore( a 5an8Hs B;9 is determined 5+ t.e 5an8Hs a5ilit+ to
-olle-t and distri5ute funds to t.ird parties in t.e form of -redit. 1.e .ig.er t.e B;9 s.owed greater use of 5an8
deposits for lending( w.i-. means 5an8 .as 5een -apa5le to run intermediar+ fun-tion properl+. *owe:er( if t.e
B;9 is too .ig. -an also rise a li>uidit+ ris8 for 5an8s. 1.e implementation of finan-ial intermediation gi:es
effe-t to 5an8ing performan-e. 1.is means t.at 5an8s will .a:e good finan-ial performan-e if t.e 5an8 appl+ its
intermediar+ fun-tion optimall+.

2.2.2. The effect of CA of the LD
Intermediation fun-tion -an 5e implemented optimal+ if supported 5+ ade>uate -apital Bu-.or+( 200'".
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E:en t.oug. t.e funds -olle-ted 5+ t.e t.ird part+ is :er+ large( 5ut if not offset 5+ additional -apital t.e 5an8s
will 5e limited in e?tending -redit. Ban8 -apital is not onl+ important as a sour-e of funds to meet t.e needs of
t.e 5an8( 5ut t.e 5an8Hs -apital will affe-t management de-isions in t.e -reation of t.e rate of profit on t.e one
.and and t.e potential ris8s on t.e ot.er. If t.e 5an8Hs strong -apital t.e 5an8 .as a strong finan-ial. 0nder t.ese
-onditions( t.e role of -apital for 5an8s is :er+ important 5ot. as a 5uffer to a--ommodate t.e in-reased
une?pe-ted losses deri:ed from -redit( interest rate( li>uidit+ and operational ris8 as well in order to 5uild pu5li-
trust. 2apital pla+s a :er+ important role 2ulp( 2001"( namel+ as3
1" 5uffer loss -apital loss as a 5uffer"
2" in:estment Me-.anism -apital as an in:estment me-.anism".
1.e same opinion was e?pressed t.at t.e role of -apital in t.e 5an8 are3
1" as a tool for a-.ie:ing t.e optimal -apital stru-ture -apital as a means for a-.ie:ing t.e optimum -apital
stru-ture"
2" as se-urit+ guards 5an8 ris8 management in order to se-ure -apital a ssu5titute ris8 management for 5an8s to
ensure safet+" S-.roe-8( 2002".
Similarl+( a--ording to 9ose 2002" t.at t.e 5an8 -apital pla+s a :er+ important role in supporting t.e 5an8Hs
operations and :ia5ilit+ in t.e long term for 5an8. 1.e strengt. of a 5an8Hs -apital -an 5e measured 5+ t.e
minimum -apital ade>ua-+ ratio or t.e t.e 2,9. 2,9 is an indi-ator of t.e a5ilit+ of 5an8s to pro:ide funds
for e?pansion and a--epting ris8 loss -aused 5+ t.e operations of t.e 5an8. @or 5an8s in Indonesia( a--ording
!BI. 1)G1#G!BIG2012 No:em5er 2#
t.
2012 su5<e-t 3 Minimum 2apital ,de>ua-+ s.all 5e at t.e low as follows3
a. #A of t.e 9is8 Ceig.ted ,ssets 9C," for t.e Ban8Hs ris8 profile rating of 1
5. 9A to less t.an 10A of t.e 9C, for t.e ris8 profile of t.e Ban8 wit. a rating of 2
-. 10A to less t.an 11A of 9C, for t.e ris8 profile of t.e Ban8 wit. a rating of $
d. 11A to 1)A of 9C, for t.e ris8 profile of t.e Ban8 wit. a rating of ) or 5
1.e .ig.er t.e 2,9( t.e greater t.e finan-ial resour-es t.at are a5le to 5e used to support
implementation of t.e parti-ular -redit intermediation fun-tion. ,--ording to Soedarto 200)" and 5+ Budiawan
200#"( 2,9 .as a positi:e and signifi-ant impa-t on 5an8 -redit. ,nd a--ording to Bu-.or+ 200'"
implementation of finan-ial intermediation influen-e on t.e -apital stru-ture of t.e 5an8. 1.is means t.at t.e
5an8 in -arr+ing out t.e fun-tions of finan-ial intermediation( espe-iall+ in lending is needed an additional funds
from t.e pu5li- and supported 5+ ade>uate -apital. Nasirudin 2005" resear-. results s.owed t.at t.e le:el of
-apital ade>ua-+ signifi-ant effe-t on B;9 in 2entral Ja:a. 1.en( a--ording Siringoringo 2012" -apital stru-ture
simultaneousl+ affe-t t.e intermediation fun-tion Ban8. @urt.ermore( resear-. results 1ang8o 2012" s.owed
t.at t.e :aria5les 2,9 signifi-antl+ influen-e to B;9. Similarl+( t.e result resear-. of Sitorus 201$" entitled
Analysis of !actors influence of "on # $erforming Loans %"$Ls& at 'o $ublic (ank at )ndonesia *tock
+,change period 2--.#2-11( t.e result of t.e resear-. indi-ates t.at t.e 2apital ,de>ua-+ 9atio 2,9"(
influen-e t.e Boan to ;eposit 9atio B;9" . C.ile t.e stud+ results M5i7i 2012"( entitled An Analysis of the
)mpact of /inimum Capital e0uirements on Commercial (ank $erformance in 1imbab2e( findings re:ealed
t.at t.ere is a signifi-ant and positi:e relations.ip 5etween -ommer-ial 5an8 -apitali7ation and its performan-e.
0tari resear-. results and *ar+anto 2011" t.e results s.owed t.at 2,9 is not signifi-ant positi:e influen-e on
t.e B;9 wit. a signifi-an-e le:el of 0.192 N 0.050. ,nd t.e results of 1amtomo resear-. 2012" partiall+
2apital 9atio ,de>ua-+ positi:e and signifi-ant effe-t on B;9.

2.2.3. The +ffect of "et )nterest /argin %")/& of the Loan to Deposit atio %LD(
,s well as 9eturn %n ,ssets 9%,"( net interest margin NIM" 5eing one of t.e indi-ators t.at -an 5e
used to measure t.e performan-e of t.e 5an8 to generate profits of t.e management of earning assets or
produ-ti:e assets owned 5an8. NIM -al-ulated 5+ -omparing t.e interest in-ome to total earning assets.
@lu-tuations in mar8et interest rates will lead to .ig.er NIM rea-.ed t.e low 5an8. 1.erefore NIM ratios ma+
also refle-t t.e mar8et ris8( ie t.e ris8 t.at t.e 5an8 due to ad:erse -.anges in mar8et -onditions espe-iall+
interest rates. Mu<eri and Oounus 2009" suggested a related -on-ept is t.e net interest margin NIM" defined as
t.e differen-e 5etween interest e?penses and interest in-ome per unit of total 5an8 NIM assets. 1.e NIM is
treated as an important indi-ator of intermediation effi-ien-+ and t.e e?pe-tation is t.at NIM would de-line as
t.e 5an8ing industr+ matures and -ompetition strengt.ens.
1.e .ig.er t.e 5etter NIM( meaning t.at t.e 5an8 .as t.e potential gains deri:ed from t.e differen-e 5etween
interest in-ome resulted in in-reased earnings and -apital as one of t.e finan-ial resour-es t.at -an 5e used to
support intermediation fun-tion espe-iall+ t.e pro:ision of -redit. 9esear-. of Sitorus 201$" stated( t.e result of
t.e resear-. indi-ates t.at net interest margin NIM" influen-e t.e Boan to ;eposit 9atio B;9". C.ile t.e stud+
results ,sto.ar 2012"( t.e results s.owed interest t.at Net interest margin NIM" :aria5les -an not strengt.en
t.e influen-e of a :aria5le loan to deposit ratio to -.anges in foreign e?-.ange earnings on t.e 5an8 of 5an8s in
Indonesia.

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2)
2.2.4. The effect of "$Ls of the LD
2redit is t.e greatest asset in:estment 5an8s. Similarl+( loan interest in-ome is t.e largest sour-e of re:enue for
5an8s. If t.e -redit returns fail t.en t.e a5ilit+ of 5an8s to pro:ide new loans will 5e disrupted. In addition to t.e
5an8Hs re:enue would also de-rease in interest in-ome due to non-re-eipt of -redit. Besides( t.e 5an8 also must
esta5lis. reser:es or pro:isions of pro5lem loans t.at ultimatel+ will redu-e t.e 5an8Hs -apital. 1.oug.( mu-.
-apital is needed for -redit e?pansion. 1.e redu-ed of 5an8s a5ilit+ to pro:ide -redit to interfere wit. t.e
implementation of t.e 5an8 intermediation. 2redit >ualit+ of a 5an8 is indi-ated 5+ t.e "$L. 1.us( N!B -an 5e
used to measure t.e a5ilit+ of 5an8s to cover t.e ris8 of default of loan repa+ment 5+ t.e de5tor. Based on Ban8
Indonesia 2ir-ular Better No. 1$G2)G;!N! on %-to5er 25t.( 2011 -on-erning t.e 2ommer-ial Ban8s( pro5lem
loans are loans to a t.ird part+ of non 5an8 -onsist of non performing loan su5 standard"( dou5tful and loss.
1.e .ig.er t.e le:el of N!Bs( t.e greater t.e -redit ris8 5orne 5+ t.e 5an8. N!B rate ma+ affe-t t.e le:el of
effi-ien-+ of 5an8s. 1.e resear-. /arim( 2.an and *assan 2010" states in Mala+sia and Singapore( -learl+
indi-ate t.at .ig.er non-performing loan redu-es -ost effi-ien-+. 1.erefore( 5an8s s.ould 5e a5le to press a low
N!B ratio so t.at t.e potential 5enefits to 5e gained will 5e e:en greater( 5e-ause 5an8s will sa:e t.e allowan-e
for -redit losses or allowan-e for non-performinf assets !!,!". 1.e low ,llowan-e !!,!" formed t.e greater
profita5ilit+ and ultimatel+ impro:e t.e 5an8Hs -apital. ,--ording to Sentausa 2009" -ited 5+ !ratama 2010"(
t.e amount of N!Bs to 5e one of t.e -auses of t.e diffi-ult+ 5an8s in lending. Similarl+( a--ording to *armanta
and E8ananda 2005" N!B is signifi-antl+ and negati:el+ related to 5an8 -redit. 1.erefore( a--ording to
Budiawan 200#" N!B .as effe-t negati:el+ and signifi-ant on 5an8 -redit. Meanw.ile( a--ording to Soedarto
200)"( N!Bs effe-t positi:el+ and signifi-ant on 5an8 -redit. C.ile t.e stud+ results of Nasirudin 2005"
s.owed t.at t.e :aria5le N!Bs .a:e a signifi-ant effe-t on B;9. 1.e resear-. results of 0tari and *ar+anto
2011" s.owed t.at N!B .as a signifi-ant negati:e influen-e on t.e B;9 wit. a signifi-an-e le:el of 0.000 P
0.050. 1.e same t.ing was stated 1amtomo 2012" and 1ang8o 2012" t.at N!B :aria5le effe-t negati:el+ and
signifi-ant on B;9. Meanw.ile( a--ording to ,l-,5edallat and ,l-S.u5iri 201$" resear-. .as empiri-all+
e?amined t.e determinants of -redit ris8 .eld 5+ Jordanian 5an8s o:er t.e 200' to 2010 periods 1.e -redit ris8
is one of t.e main ris8s t.at seriousl+ affe-t 5an8s= sta5ilit+. Meanw.ile( a--ording to Sitorus 201$" t.e result
of t.e resear-. indi-ates t.at t.e 2,9( 9%,( NIM and %E%I t.at totall+ influen-e t.e N!B.

2.2... The +ffect of 5A of the LD
Ban8 is is an organi7ation t.at -om5ines .uman effort and finan-ial resour-es to -arr+ out t.e fun-tions of t.e
5an8 in order to ser:e t.e needs of t.e -ommunit+ and to ma8e a profit for t.e owners of t.e 5an8 Jeorge
*empel( 1999". Ban8ing profits o5tained t.roug. 5an8 intermediation pro-ess. ,nal+sis of profita5ilit+ needs to
5e done to measure t.e le:el of 5usiness effi-ien-+ and profit a-.ie:ed 5+ a 5an8. 9atio -ommonl+ used to
measure and -ompare t.e performan-e of profita5ilit+ is 9%,. 9%, is t.e ma<or ratio used in anal+7ing 5an8
profita5ilit+. 9%, is used to assess t.e a5ilit+ of 5an8 management in managing all 5an8 assets to -reate re:enue
in t.e form of profit is -al-ulated 5+ -omparing net in-ome to a:erage total assets. 1.e .ig.er of t.e 9%,( so
5etter of t.e 5an8Hs management to generate profits. 1.e results stud+ of 0tari and *ar+anto 2011" s.owed t.at
9%, is not signifi-ant negati:e influen-e on t.e B;9 wit. a signifi-an-e le:el of 0.5'0N 0.050. C.ile
a--ording to 1amtomo 2012"( found t.at 9%, positi:e and signifi-ant effe-t on B;9.

2.3. 6ypothesis
Based on t.e relations.ip 5etween resear-. o5<e-ti:es and t.eoreti-al framewor8 to t.e formulation of
t.e resear-. pro5lem( t.e .+pot.esis are as follows3
*13 2,9 positi:el+ effe-t on B;9
*23 NIM positi:el+ effe-t on B;9
*$3 N!B negati:el+ effe-t on B;9
*)3 9%, positi:el+ effe-t on B;9
*53 2,9( NIM( N!B( 9%, effe-t on B;9

-+ Research method
3.1. esearch method
1.e met.ods used in t.is resear-. are des-ripti:e met.od and :erifi-ation met.od. ;es-ripti:e met.od
is a met.od used to anal+7e data in a wa+ to des-ri5e or depi-t t.e data t.at .as 5een -olle-ted as is wit.out
intending to appl+ general -on-lusions or generali7ations w.ile t.e :erifi-ation met.od is a met.od of resear-.
t.at aims to determine t.e relations.ip 5etween two or more :aria5les. 1.is :erifi-ation met.od is used to test
t.e trut. of a .+pot.esis. Influen-e or s.ape t.e -ausal relations.ip 5etween :aria5les Q and O -an 5e 8nown
from t.e resear-. met.od of :erifi-ation. Sugi+ono( 2009"

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25
3.2. Type,data source, population, sample and data collection methods.
;ata used in t.is stud+ is se-ondar+ data ,ll Indonesian regional de:elopment 5an8s w.i-. in-lude 2,9( NIM(
N!B( 9%, and t.e B;9 were o5tained from t.e Indonesian Ban8ing Statisti-s and ;ata 2enter 2onsultant
E/%@IN !u5li-ations in 2012 -al-ulated >uarterl+". 1.e resear-. population was 2' regional de:elopment
5an8s B!;" ser:e as t.e o5<e-t of stud+. C.ile t.e o5<e-t is o5ser:ed finan-ial statements position ;e-em5er
$1st( 2012. ;ata -olle-tion met.od used was to stud+ t.e do-umentation. Stud+ of do-umentation is done wit.
t.e data -olle-tion and -lassifi-ation -ategor+ of written materials related to t.e resear-. pro5lem.

3.3. 5perational 7ariables
1.is stud+ uses t.e independent :aria5les( namel+ 2,9( NIM( N!B( 9%, and t.e dependent :aria5le is
t.e implementation of fun-tion 5an8ing intermediation as measured 5+ t.e B;9.

3.4. Analysis Techni0ues Data
1.e data anal+sis te-.ni>ue used in t.is stud+ is a multiple linear regression. @irst( it is tested to
determine w.et.er t.e assumptions of -lassi-al linear regression model doesn=t .a:e pro5lem of normalit+(
multi--ollinearit+( .etero-edastit+ and auto-orrelation. If all of t.em were fulfilled means t.at t.e model .as a
de-ent anal+sis used Ju<arati( 200$". 1o e?amine t.e .+pot.esis was used 1-test to determine statisti-al
signifi-an-e of t.e effe-t of independent :aria5les on t.e dependent :aria5le partial+( @-test to determine t.e
statisti-al signifi-an-e of t.e -oeffi-ient of multiple signifi-an-e or @-test to determine signifi-an-e of t.e
independent :aria5les on t.e dependent :aria5le simultaneousl+. ;ata pro-essing is done 5+ using t.e software
Statisti-al !a-8age for So-ial S-ien-e S!SS" :ersion 20.0 for Cindows. 1.e regression e>uation used is as
follows3

O R a S 8 9
1
S 8 9
2
S 8 9
3
S 8 9
4
S e
C.ere(
O R Boan to ;eposit 9atio B;9"
a R , -onstant w.i-. is t.e :alue of t.e :aria5le O w.en t.e :aria5le Q is 0 7ero"
8 R 2oeffi-ient of t.e regression line
Q
1
R 2apital ,de>ua-+ 9atio 2,9"
Q
2
R Net Interest Margin NIM"
Q
$
R Non !erforming Boans N!B"
Q
)
R 9eturn on ,ssets 9%,"
e R 9esidual

.+ Res!lt and disc!ssions
4.1. The development LD, CA, ")/, "$L and 5A regional development bank in )ndonesia
Based on data until ;e-em5er 2012( t.e de:elopment of B;9( 2,9( NIM( N!B and 9%, were a-.ie:ed 5+ 2'
regional de:elopment 5an8s operating in Indonesia see 1a5le 1" -an 5e des-ri5ed as follows3
1.e a:erage :alue of B;9 a-.ie:ed until ;e-em5er $1( 2012 amounted to I#.5IA. 1.at is B!; t.roug.out
Indonesia .a:e 5een a5le to appl+ t.e fun-tions of 5an8 intermediation t.roug. fund raising and lending of
I#.5IA( lower t.an t.e national 5an8s #$.5#A"( and ot.er groups su-. as state 5an8s I9.#)A"D pri:ate national
5an8s # 1.5#A"D non-foreign e?-.ange 5an8s #2.I$A"D <oint 5an8s 115.'$A" and foreign e?-.ange 5an8s
111.21A" Indonesian Ban8ing Statisti-s( 201$". But it is still in t.e range of B;9 determined 5+ Ban8
Indonesia( namel+3
1 t.e lower limit of t.e B;9 target 5+ I#A
2 t.e upper limit of t.e B;9 target3
a of 100A up to t.e date of ;e-em5er 1st( 201$
5 5+ 92A from t.e date of ;e-em5er 2nd( 201$.
1.e lowest :alue of B;9 at 55.IIA is a-.ie:ed 5+ B!; Sout. /alimantan( w.ile t.e .ig.est :alue of
B;9 at 11$.21A is a-.ie:ed 5+ B!; Sout. Sulawesi. 1.e a:erage :alue of 2,9 a-.ie:ed until t.e period
;e-em5er $1( 2012 amounted to 1#.$$A is a5o:e t.e minimum -apital re>uirement of #A as re>uired 5+ Ban8
Indonesia. 1.e .ig.est 2,9 at $2.29A was a-.ie:ed 5+ B!; 2entral Sulawesi and t.e lowest 2,9 at 12.$0A
was a-.ie:ed 5+ B!; ;/I Ja8arta". 1.erefore( t.e a:erage :alue of t.e 2,9 indi-ates t.at B!; still .as t.e
-apital a5ilit+ to in-rease intermediation fun-tion t.roug. lending distri5ution.
1.e a:erage :alue a-.ie:ed NIM period ;e-em5er $1
st
( 2012 amounted to I.'$A. 1.e .ig.est :alue
of 11.99A NIM was a-.ie:ed 5+ B!; Cest Nusa 1enggara and t.e lowest NIM of 5.15A a-.ie:ed 5+ t.e B!;
Sout. /alimantan. B+ loo8ing at t.e a:erage :alue of NIM is still a5o:e t.at re>uired 5+ Ban8 Indonesia
amounting to 2A. 1.is means t.at B!; 9egional ;e:elopment Ban8" is a5le to o5tain a positi:e interest
margin of t.e management of its assets. %f t.ese fa-tors indi-ate t.at t.e B!; still .as t.e a5ilit+ to impro:e t.e
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2'
fun-tion of intermediation t.roug. lending.
1.e a:erage N!Bs :alue was 2.1$A a-.ie:ed 5+ period of ;e-em5er $1st( 2012. 1.e .ig.est N!B
:alue of ).)9A was a-.ie:ed 5+ B!; 2entral Sulawesi and t.e lowest N!Bs was 0.1IA a-.ie:ed 5+ B!; Cest
/alimantan. B+ loo8ing at t.e a:erage :alue of t.e N!B s.ows t.at t.e -redit ris8 was fa-ed 5+ B!; are at
moderate al5eit under toleran-e re>uired 5+ Ban8 Indonesia at $AT'A. It means 5eing a5le to -ontrol t.e ris8 of
B!; lending. Be-ause if N!Bs in-rease will disrupt t.e B!;=s a5ilit+ to impro:e t.e fun-tion of intermediation
t.roug. lending.
1.e a:erage 9%, :alue was 2.1$A a-.ie:ed 5+ period ;e-em5er $1st( 2012. 1.e .ig.est 9%, :alue
was 5.'2A a-.ie:ed 5+ t.e Cest Nusa 1enggara and t.e lowest 9%, was 1.2IA a-.ie:ed 5+ t.e Sout.
/alimantan. B+ loo8ing at t.e a:erage 9%, :alue s.ow t.at all B!; a5le to get profit from all t.eir assets. 1.e
a:erage 9%, :alue is a5o:e t.at re>uired 5+ Ban8 Indonesia at 1.25A. 1.is means t.at t.e in-ome earned from
B!; still .as t.e a5ilit+ to impro:e t.e fun-tion of intermediation t.roug. lending.
/abel ' 1.e de:elopment B;9( 2,9( NIM( N!B and 9%, regional de:elopment 5an8s in Indonesia
;e-em5er $1
st
( 2012 per-entage"

No. 9egional ;e:elopment Ban8s B;9 2,9 NIM N!B 9%,
1. ;/I - Ja8arta I$.50 12.$0 5.2' $.20 1.#I
2. Cest Ja:a I).09 1#.11 '.I' 2.0I 2.)'
$. 2entral Ja:a #2.'2 1).$# #.22 0.#0 2.I$
). ;IO- Jog+a8arta I1.#9 1).)0 9.02 0.#) 2.5'
5. East Ja:a #$.55 2'.5' '.)# 2.95 $.$)
'. ;I - ,-e. #9.#9 1I.#2 I.#I $.$0 $.''
I. Nort. Sumatera 101.90 1$.2) #.)9 2.#' 2.99
#. Cest Sumatera 100.$5 15.12 I.2' 2.'9 2.'5
9. Sout. Sumatera I5.9# 1$.55 '.50 '.#2 1.90
10. 9iau ''.)9 19.5' '.I2 2.95 2.95
11. Jam5i #2.29 2).)1 #.21 0.$$ $.5#
12. Beng8ulu 9$.2I 15.#) I.I0 0.22 $.)1
1$. Bampung 91.I$ 19.29 '.51 0.I) 2.#0
1). Bali #0.'0 1'.I9 I.50 0.5I ).2#
15. East Nusa 1enggara 9$.)5 1'.52 #.'I 1.20 $.'5
1'. Cest Nusa 1enggara 10#.)1 12.92 11.99 1.9# 5.'2
1I. !apua I1.'5 19.95 5.I1 0.#) 2.#1
1#. Malu8u I#.'1 1).I2 I.#5 2.'I $.25
19. Nort. Sulawesi 109.'2 1).I0 #.'' 0.#1 2.95
20. Sout. Sulawesi 11$.21 21.91 9.5$ 1.$9 $.99
21. 2entral Sulawesi 10I.2I $2.29 '.15 ).)9 1.59
22. Sout.east Sulawesi 92.02 22.5$ #.#9 1.$$ 5.10
2$. East /alimantan 5'.I# 20.#$ '.'5 I.)5 2.50
2). Cest /alimantan #'.#0 1'.#I 9.01 0.1I $.$$
25. Sout. /alimantan 55.II 1#.22 5.15 1.#$ 1.2I
2'. 2entral /alimantan I1.## 2$.I5 I.'I 0.#) $.)1
Minimum 55(II 12($0 5(15 0(1I 1(2I
Ma?imum 11$(21 $2(29 11(99 )()9 5('2
,:erage I#(5I 1#($$ I('$ 2(1$ $(10
*ource: Ban8ing Statisti-s Indonesia .ttp3GGwww.5i.go.idG downloaded Ma+( 9( 201$( pro-essed
and E8ofin 2onsulting 201$"

4.2. /ultiple linear regression analysis
Multiple linear regression anal+sis was used to determine 5asi-all+ dependen-e of dependent :aria5le wit. one
or more independent :aria5les( wit. t.e aim of estimating or predi-ting t.e a:erage of population data or a:erage
:alue of t.e dependent :aria5le 5ased on t.e :alue of t.e independent :aria5le 8nown Ju<arati( 200$". B+
regression anal+sis it -an 5e seen w.et.er t.ere is influen-e 5etween independent :aria5les wit. t.e dependent
:aria5le. 1.e results of multiple linear regression anal+sis in t.is stud+ -an 5e seen in 1a5le 2.
Based on 1a5le 2( t.e regression e>uation is as follows 3


LD R 0.)21 - 0$#Q
1
S 0.$55Q
2
S 0.'19Q
$
S 5.052Q
)


1.e e>uation a5o:e it -an 5e e?plained as follows3
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2I
1. 2onstant :alue a" of 0.)21( w.i-. means a positi:e -onstant :alue. 1.is s.ows if t.e 2,9 Q
1
"( NIM Q
2
"(
N!B Q
$
" and 9%, Q
)
"( .as a :alue of 7ero( t.en t.e B;9 O" in-rease 5+ 0.)21
2. 9egression -oeffi-ient for t.e :aria5le 2,9 Q
1
" is -0.$#( indi-ating a negati:e t.e relations.ip 5etween t.e
2,9 Q
1
" wit. B;9 O"( meaning t.at if t.e addition of 2,9 Q
1
" for e:er+ one unit( assuming ot.er
:aria5les -onstant( t.e B;9 O" de-reased 5+ 0.0$#. ,nd :i-e :ersa( if t.ere is a redu-tion of 2,9 Q
1
" of
t.e unit it will in-rease t.e B;9 O" e>ual to 0.0$#.
$. 9egression -oeffi-ient for t.e :aria5le NIM Q
2
" is 0.$55( indi-ating a positi:e t.e relations.ip 5etween t.e
NIM Q
2
" wit. B;9 O"( meaning t.at if t.e addition of NIM Q
2
" for e:er+ one unit( assuming ot.er
:aria5les -onstant( t.e B;9 O" de-reased 5+ 0.$55. ,nd :i-e :ersa( if t.ere is a redu-tion of NIM Q
2
" of
t.e unit it will in-rease t.e B;9 O" e>ual to 0.$55.
). 9egression -oeffi-ient for t.e :aria5le N!B Q
$
" is 0.'19( indi-ating a positi:e relations.ip 5etween t.e N!B
Q
$
" wit. B;9 O"( meaning t.at if t.ere is additional N!B Q
$
" per unit( assuming ot.er :aria5les remain
t.e B;9 O" was redu-ed 5+ 0('19. ,nd :i-e :ersa if t.ere is a redu-tion in N!B Q
$
" of t.e unit it will
in-rease t.e B;9 O" e>ual to 0.'19
5. 9egression -oeffi-ient for t.e :aria5le 9%, Q
)
" is 5.052 w.i-. means it .as a positi:e :alue( it indi-ates t.e
dire-tion of t.e relations.ip 5etween 9%, Q
)
" wit. B;9 O"( meaning t.at if t.ere is additional 9%, Q
)
"
of one unit( assuming ot.er :aria5les remain t.e will add to t.e B;9 O" of 5.052. %t.erwise an+ su-.
redu-tion o--urred 9%, Q
)
" 5+ one per-ent t.en it will redu-e t.e B;9 O" e>ual to 5.052

/able % 1est results of multiple linear regression -oeffi-ients
a

Model
0nstandardi7ed 2oeffi-ients
Standardi7ed
2oeffi-ients t Sig.
B Std. Error Beta
1
2onstant" .)21 .09) ).)I5 .000
2,9 -.0$# .$0) -.12 -.12) .902
NIM .$55 .11' .$9# $.051 .00$
N!B -.'19 .I52 .0'9 .#22 .)15
9%, 5.052 2.0)1 .$15 2.)I' .015
a. ;ependent &aria5le3 B;9
Sum5er 3 %utput S!SS 20.0

..3. Analysis of correlation coefficient and coefficient of determination
2orrelation -oeffi-ient anal+sis was used to determine t.e dire-tion and t.e strong relations.ip among t.e t.ree
independent :aria5les. 1.ose are t.e :aria5le 2,9 Q
1
"( NIM Q
2
"( N!B Q
$
"( and 9%, Q
)
"( wit. B;9 as a
dependent :aria5le O". see ta5le $".
Based on 1a5le $( it -an 5e -on-luded t.at t.e :aria5le t.e 2,9 Q
1
"( NIM Q
2
"( N!B Q
$
"( and 9%, Q
)
"( wit.
B;9 dependent :aria5le .as a :alue of -orrelation r" 0.'$'( meaning t.at t.e -orrelation relations.ip le:el" t.e
2,9 Q
1
"( NIM Q
2
"( N!B Q
$
"( and 9%, Q
)
"( wit. B;9 dependent :aria5le O" are in strong -orrelation
Sugi+ono( 2009". C.ile t.e -oeffi-ient of determination anal+sis was used to determine t.e -ontri5ution effe-t
of 2,9 Q
1
"( NIM Q
2
"( N!B Q
$
"( and 9%, Q
)
"( wit. B;9 dependent :aria5le O" as a dependent :aria5le O"
e?pressed as a per-entage. ,nal+sis of t.e -oeffi-ient of determination is s>uaring t.e -orrelation :alue 9
2
" and
5ased on 1a5le $ t.at t.e 9
2
:alue was 0.)05. So w.en multiplied 5+ 100A( t.e -ontri5ution or effe-t of :aria5le
2,9 Q
1
"( NIMQ
2
"( N!BQ
$
"( and 9%, Q
)
"( wit. B;9 dependent :aria5le O" is )0.5A indi-ating t.at 2,9
Q
1
"( NIM Q
2
"( N!B Q
$
"( and 9%, Q
)
" a--ounted for )0.5A of t.e B;9 O"( w.ile t.e remaining 59.5A
t.oug.t to 5e influen-ed 5+ ot.er :aria5les not e?amined.

/able -. 1est results -orrelation -oeffi-ient and -oeffi-ient of determination model summar+
5

Model 9 9 S>uare ,d<usted 9 S>uare Std. Error of t.e Estimate
1 .'$'
a
.)05 .$#1 .100#9)'
Sum5er 3 %utput S!SS 20.0

4.4. $artial significance test %t#test&
1o e?amine .+pot.eses on t.e signifi-an-e of t.e partial model used t-test. It is intended to determine t.e
effe-t of independent :aria5les 2,9( NIM( N!B and 9%," partiall+ to t.e dependent :aria5le B;9".
!artiall+( t.e influen-e of t.e t.ree independent :aria5les to t.e B;9 as an independent :aria5les( s.own in t.e
1a5le ) partial test results t-test"( it -an 5e argued t.at3
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ISSN 2222-1905 !aper" ISSN 2222-2#$9 %nline"
&ol.'( No.2)( 201)

2#
1. Effe-t of 2,9 on t.e B;9
!artial test results 5etween t.e 2,9 wit. an B;9 s.ows t.e t-test :alue of T 0.12) less t.an t-ta5le 1.9#$"
wit. a signifi-ant :alue of 0.902 w.i-. is 5elow 0.05. 1.is means t.at t.e 2,9 effe-ts on B;9. 1.us
.+pot.esis *1 stating 2,9 positi:e effe-t on B;9 is re<e-ted.
1.e test results are in line wit. pre:ious resear-. -ondu-ted 5+ 0tari and *ar+anto 2011" w.i-. states t.at
2,9 does not .a:e signifi-ant positi:e effe-t on t.e B;9 wit. a signifi-an-e le:el of 0.192 N 0.050.
*owe:er( -ontrar+ to t.e results of resear-. Soedarto 200)"D Nasirudin 2005"D Bu-.or+ 200'"D Budiawan
200#"D 1ang8o 2012"D 1amtomo 2012"D M5i7i 2012" and Sitorus 201$" w.i-. states t.at 2,9 .as
positi:e and signifi-ant effe-t as an indi-ator on t.e implementation of 5an8ing intermediation fun-tion.

2. Effe-t of Net Interest Margin NIM" of t.e Boan to ;eposit 9atio B;9".
!artial test results 5etween Net Interest Margin NIM" wit. loan to deposit ratio B;9" s.ows t.e t-:alue of
$.051-ount is greater t.an t-ta5le 1.9#$" wit. a signifi-ant :alue of 0.00$ w.i-. is 5elow 0.05. 1.is means
t.at t.e Net Interest Margin NIM" affe-t t.e Boan to ;eposit 9atio B;9". 1.us t.e .+pot.esis *2 w.i-.
states NIM positi:e effe-t on B;9 is a--epta5le. 1.e test results are in line wit. pre:ious resear-. -ondu-ted
5+ Sitorus 201$" w.i-. states t.at t.e result of t.e resear-. indi-ates t.at net interest margin NIM"
influen-e t.e Boan to ;eposit 9atio B;9". *owe:er( -ontrar+ to t.e ,sto.ar 2012" resear-. results( w.i-.
states t.at t.e results s.owed net interest :aria5les -annot strengt.en t.e influen-e of a :aria5le loan to
deposit ratio to -.anges in earnings on 5an8 foreign e?-.ange 5an8 in Indonesia.

$. Effe-t of N!B on t.e B;9
!artial test results 5etween N!B to B;9 s.ows t.e t-:alue of 0.#22 less t.an t.e t-ta5le 1.9#$" wit. a
signifi-ant :alue of 0.)1$ w.i-. is a5o:e 0.05. 1.is means t.at t.e N!B do not affe-t t.e B;9. 1.us t.e
.+pot.esis *$ w.i-. states N!B negati:el+ effe-t t.e B;9( is re<e-ted. 1.is mean N!B in B!; did not .a:e
a signifi-ant impa-t on t.e implementation of 5an8ing intermediation 5+ B!; 5e-ause t.e a:erage N!B rate
in B!; is relati:el+ small. N!B is relati:el+ small indi-ating t.at t.e -redit ris8 fa-ed 5+ small B!; as a
result of good -redit management. 1.e test results are in line wit. t.e resear-. results of Soedarto 200)" t.at
states N!Bs positi:e and 5ut not signifi-ant effe-t on 5an8 -redit. *owe:er( in -ontrast to pre:ious resear-.
-ondu-ted 5+ !ratama 2010"( *armanta and E8ananda 2005"( Nasirudin 2005"( 0tari and *ar+anto 2011"(
1amtomo 2012" and 1ang8o 2012" t.at partiall+( N!Bs :aria5le .as negati:e effe-t and signifi-ant to t.e
B;9. Meanw.ile( a--ording to Budiawan 200#" w.i-. states t.at N!B no signifi-ant and negati:e effe-t on
5an8 -redit.

). Effe-t of 9%, on B;9
!artial test results 5etween 9%, wit. t.e B;9 s.ows t.e t-test :alue of 2.)I' is greater t.an t-ta5le 1.9#$"
wit. a signifi-ant :alue of 0.015 w.i-. is 5elow 0.05. 1.is means t.at t.e 9%, effe-t on B;9. 1.us
.+pot.esis *) w.i-. states 9%, .as a positi:e effe-t on B;9 is a--epta5le. 1.e test results are in line wit.
pre:ious resear-. -ondu-ted 5+ 1amtomo 2012" w.i-. states t.at t.e 9%, .as positi:e and signifi-ant
effe-t on B;9. *owe:er( in -ontrast to t.e 0tari and *ar+anto 2011" w.i-. states t.e results s.owed t.at
9%, is not signifi-ant and .as negati:e effe-t on t.e B;9 wit. a signifi-an-e le:el of 0.5'0 N 0.050

/able .+ !artial test results t-test"
Model t--ount t-ta5le Sig ;es-ription

1
2onstant" 10.55' .000
2,9 -.12) 1.9#$ .902 Not Signifi-ant
NIM $.051 1.9#$ .00$ Signifi-ant
N!B .#22 1.9#$ .)1$ Not Signifi-ant
9%, 2.)I' 1.9#$ .015 Signifi-ant
a. ;ependent &aria5le3 B;9
Sum5er 3 %utput S!SS 20.0

4... *imultaneous significant test %!#test&
@ - test was -ondu-ted to determine t.e effe-t of independent :aria5les 2,9( NIM( N!B and 9%," toget.er
simultaneousl+" to t.e dependent :aria5le B;9". Simultaneous influen-e of t.e four independent :aria5les to
t.e independent :aria5les B;9 is s.own in 1a5le 5. Based on t.e results of t.e @-test -al-ulations in 1a5le 5(
@--ount was 1'.#$1 larger t.an t.e @-ta5le 2.''1" wit. a signifi-an-e :alue sig" of 0.000 is smaller t.an 0.05.
1.is means t.at t.e independent :aria5les 2,9( NIM( N!B and 9%," simultaneousl+ signifi-ant effe-t to
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&ol.'( No.2)( 201)

29
dependent :aria5le B;9". 1.us t.e *5 .+pot.esis w.i-. states 2,9( NIM( N!B and 9%, effe-t on B;9 is
a--epta5le. 1.e test results are in line wit. pre:ious resear-. -ondu-ted 5+ !ra+udi 2011" t.at t.e :aria5le
2,9( N!B( %E%I( 9%, and NIM wit. t.e @ test( simultaneousl+ affe-t t.e B;9. @urt.ermore( a--ording to
Siringoringo 2012" resear-. results( t.at is simultaneousl+ affe-t t.e -apital stru-ture of t.e Ban8
intermediation fun-tion. ,nd 1ang8o 2012" resear-. results( s.owed t.at t.e :aria5les 2,9 and N!B .a:e
signifi-antl+ influen-e on B;9( and N!B :aria5le .as a signifi-ant negati:e effe-t on B;9. Similarl+( t.e
results of resear-. Sitorus 201$" w.i-. states t.at t.e 2,9( 9%,( NIM and %E%I influen-e t.e B;9.
Nasirudin 2005" states t.at 2,9 and N!B .a:e a signifi-ant effe-t on B;9. C.ile 1amtomo 2012" found t.at
during t.e resear-. period partiall+( :aria5le of 2,9 and 9%, ratio is positi:e and signifi-ant effe-t on B;9 of
a -ompan+( N!Bs .as negati:e effe-t and signifi-ant on B;9 of a -ompan+( w.ile t.e t.ird part+ funds no
effe-t on B;9 of a -ompan+. 1.e resear-. results s.owed t.at t.e 2,9 :aria5les signifi-antl+ influen-e to
B;9 and N!B :aria5le and .as a signifi-ant negati:e effe-t on B;9. But a--ording to 0tari and *ar+anto
2011"( t.e results s.owed t.at t.e fi:e independent :aria5les 2,9( N!B( 9%,( %E%I and JCM" influen-e
5+ 2).)A against t.e le:el of li>uidit+ pro?+ B;( .and t.e 2,9 does not .a:e signifi-ant positi:e influen-e on
t.e B;9 wit. a signifi-an-e le:el of 0.192 N 0.050( N!B .as a signifi-ant negati:e influen-e on t.e B;9 wit. a
signifi-an-e le:el of 0.000 P 0.050. 9%, does not signifi-ant negati:e influen-e on t.e B;9 wit. a signifi-an-e
le:el of 0.5'0 N 0.050( and %E%I .as a signifi-ant positi:e effe-t on t.e B;9 wit. a signifi-an-e le:el of 0.001
P 0.050.

/abel 0 Simultaneous test results @-test"
AN"1A
a

Model Sum of S>uares df Mean S>uare @ Sig.
1
9egression .'#5 $ .1I1 1'.#$1 .000
5

9esidual 1.00# 100 .010
1otal 1.'9$ 10$
a. ;ependent &aria5le3 B;9
5. !redi-tors3 2onstant"( 9%,( 2,9( N!B( NIM

0+ C"NC,2I"N
Based on t.e 5a-8ground( t.e formulation of t.e pro5lem( .+pot.eses( met.ods and resear-. results and
dis-ussion( some -on-lusions -an 5e drawn as follows3
1. In 2012 B!; 9egional ;e:elopment Ban8" t.roug.out Indonesia are a5le to -arr+ out 5an8ing
intermediation fun-tion as measured 5+ t.e Boan to ;eposit 9atio B;9" of I#.5IA( still lower t.an t.e
national 5an8s and ot.er 5an8s( 5ut still wit.in t.e range of t.e B;9 is determined 5+ Ban8 Indonesia.
Bowest B;9 :alue rea-.ed 5+ t.e B!; Sout. /alimantan( w.ile t.e .ig.est B;9 :alue a-.ie:ed 5+ t.e
B!; Sout. Sulawesi.
2. Based on t.e test results partiall+ t.at :aria5le of NIM and 9%, .a:e positi:e and signifi-ant effe-ts to B;9.
N!B .as positi:e effe-t 5ut no signifi-ant effe-t to B;9. C.ile t.e 2,9 .as negati:e effe-t 5ut no
signifi-ant effe-t to B;9. C.ile 5ased on t.e test results simultaneousl+ t.at :aria5le of 2,9( NIM( N!B(
and 9%, signifi-antl+ influen-e to B;9 :aria5le
$. 1.e amount of t.e -ontri5ution or influen-e :aria5le of 2,9( N!B and 9%, to t.e dependent :aria5le of
B;9 is )0.5A w.ile t.e remaining 59.5A t.oug.t to 5e influen-ed 5+ ot.er :aria5les not e?amined in t.is
stud+.

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#r+ 4erry Achmad B!chory, E, MM+ is a Be-turer of E/0I1,S E-onomi-s 2ollege Bandung( Indonesia.
*is last edu-ational degree is in t.e do-toral field of e-onomi-s from !ad<ad<aran 0ni:ersit+ in 200'. *e is also
a Be-turer in t.e Master of ,--ounting( Master of ,pplied E-onomi-s and Master Management programme in
!ad<ad<aran 0ni:ersit+ and Master Management programme in Islami- 0ni:ersit+ of Bandung and Bandung
Cid+atama 0ni:ersit+. ,s a 5an8ing pra-titioner( .e wor8ed in !1. Ban8 Ja5ar Banten sin-e 19I'. 1.e last
position .e .eld was as t.e ;ire-tor of 2omplian-e and 9is8 Management. *e is a mem5er of Indonesian
E-onomists ,sso-iation( Bran-. 2oordinator( Bandung Cest Ja:a( 1.e Institute of Internal ,uditors and 1.e
Indonesian Ban8ers ,sso-iation( and mem5er of t.e E?pert 2oun-il of Cest Ja:a E-onomi- @orum. *e .as
pu5lis.ed in national and international a--redited <ournals. *e wrote The (asics of (ank /arketing ISBN3
9I9.9I115.5.Q( 200'"( )ntroduction to (usiness ISBN3 9I9.9I115.#.#I( 200#"( /arketing /anagement ISBN3
9I#.'02.9'))9.1.$( 2010"D *trategic /anagement ISBN3 9#I.'029'))9.0.'( 2010"( and t.e /anagement of
!inancial )nstitutions ISBN3 9I#.'02.9'))9.5.1.( 2011".



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