Abstract
Capital aspect is the one very important aspect in the banking sector,
not only for business developing but also to overcome the various of risk. In
order to keep the healty and stability of the state owned bank capital, the central
bank as monetary authority in Indonesia has determine the regulation about
capital healty. It looks from the minimum capital requirement that must been
obeyed by banking is 8%. This situation based on economy crisis case in 1997
which has an impact on the banking sector. This study aims to analyze the effect
of profitability, credit risk, efficiency, liquidity, exchange rate and inflation on
capital ratios of state owned bank in Indonesia. The type of this research are
descriptive and associative using time series data from the first quarter of 2004
until the fourth quarter of 2015 with documentation data collected technique.
Data were analyzed with multiple linear regression model, the prerequisite test
(multicolinearity, autocorrelation and heteroscedasticity), t test, and F test.
The result shows that (1) Profitability has positive and significant effect on
capital ratios of state owned bank in Indonesia. (2) Credit risk has positive and
significant effect on capital ratios of state owned bank in Indonesia. (3)
Efficiency has negative and significant effect on capital ratios of state owned
bank in Indonesia. (4) Liquidity has negative and significant effect on capital
ratios of state owned bank in Indonesia. (5) Exchange rate has positive and
significant effect on capital ratios of state owned bank in Indonesia. (6) Inflation
has positive and not significant effect on capital ratios of state owned bank in
Indonesia.
not only for business developing but also to overcome the various of risk. In
order to keep the healty and stability of the state owned bank capital, the central
bank as monetary authority in Indonesia has determine the regulation about
capital healty. It looks from the minimum capital requirement that must been
obeyed by banking is 8%. This situation based on economy crisis case in 1997
which has an impact on the banking sector. This study aims to analyze the effect
of profitability, credit risk, efficiency, liquidity, exchange rate and inflation on
capital ratios of state owned bank in Indonesia. The type of this research are
descriptive and associative using time series data from the first quarter of 2004
until the fourth quarter of 2015 with documentation data collected technique.
Data were analyzed with multiple linear regression model, the prerequisite test
(multicolinearity, autocorrelation and heteroscedasticity), t test, and F test.
The result shows that (1) Profitability has positive and significant effect on
capital ratios of state owned bank in Indonesia. (2) Credit risk has positive and
significant effect on capital ratios of state owned bank in Indonesia. (3)
Efficiency has negative and significant effect on capital ratios of state owned
bank in Indonesia. (4) Liquidity has negative and significant effect on capital
ratios of state owned bank in Indonesia. (5) Exchange rate has positive and
significant effect on capital ratios of state owned bank in Indonesia. (6) Inflation
has positive and not significant effect on capital ratios of state owned bank in
Indonesia.