ANALYSIS OF
FACTORS AFFECTING THE PERFORMANCE OF BANKING
IN INDONESIA
IN INDONESIA
BY:
WASIS RAHARJO
Abstraction
This research to determine the effect of the inflation rate (X1), Interest Rate (X2) and Exchange (X3) on the performance of banking in Indonesia. The study was conducted based on financial ratios Banking in Indonesia. During the period of 12 years between 2000 until 2011 where the bank's performance benchmark is ROA.
This study used multiple linear regression method by setting the dependent variable is Return on Assets (ROA), and the rate of inflation Variables (X1), Interest Rate (X2) and Exchange (X3). before analyzing the regression results, these results are tested first classical assumptions and significance, ensuring that the results meet the standards BLUE (Best Linear Unbiased Estimator)
The results of this study indicate that the rate of inflation (X1), Interest Rate (X2), and the exchange rate (X3) simultaneously significant effect on Return On Asset (Y). Indicated by F count = 15,924> F = 4.07. While partially, variable Interest Rate (X2) significantly influence the Return on Assets (Y). But Inflation (X1) and Exchange (X3) does not significantly influence the Return on Assets (Y).
Keywords: Inflation, Interest Rate, Exchange Rate and Return on Assets