The Analysis of the Influence of Capital Adequacy Ratio, Non Performing Loan, Third Party Fund Growth, Inflation Rate, and Exchange Rate toward Loan to Funding Ratio (A Case study of Commercial Banks Listed in Indonesia Stock Exchange)

Abstract

The purpose of this research is to analyze the influence of Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Growth of Third Party Fund, Inflation Rate, and Exchange Rate towards Loan to Funding Ratio (LFR) of Listed Public Banks in Indonesia. The sample of this research consisted of twenty one Commercial Banks, which consisted of four state owned banks and seventeen foreign exchange commercial banks, and selected by using purposive sampling method as the sample determining method. Data are taken from respective bank’s Annual Reports and weekly monetary rates which was released by Bank Indonesia for the period of 2011- 2015. The analysis methods were multiple regressions with dummy variable and also classical assumption tests such as normality test, multicolinierity test, heteroscedasticity test, and autocorrelation test. The result of the research by using F test showed that two of the five independent variables, CAR and growth of third party fund with the significance level of 0.014 and 0.020 had a positive significant influence toward Loan to Funding Ratio while NPL, Inflation Rate, and Exchange Rate had a positive but not significant influence with the significance level of 0.413, 0.297, 0.202 respectively. Keyword: Capital Adequacy Ratio (CAR), Non-Performing Loan (NPL), Inflation Rate, Growth of Third Party Fund, Exchange Rate, Loan to Funding Ratio (LFR)