Analysis of the Effect of Capital, Operational Efficiency, Credit Risk and Profitability to the Implementation of Banking Intermediation Functions (Study on Regional Development Bank All Over Indonesia in 2012)

The aim of this study was to analyze the factors that affect the implementation of banking intermediation include capital, operational efficiency, credit risk and profitability. The methods used are descriptive and verificative, with secondary data from financial statements all over 26 Indonesian Regional Development Banks as a research object’s units. Data analysis technique is the multiple linear regression, hypothesis testing while using t - test to examine the effect of partial variables and test - F to examine the effect of variables simultaneously with a significance level of 5 %.Based on the results it is concluded that partial OEO Iand ROA have positive and significant effects on LDR. CAR has positive but no significant effects on LDR. While the NPLs has negative but no significant effect on LDR. Simultaneously CAR, OEOI, NPL and ROA significantly influence the level of influence of LDR with 52.69% and the remaining influenced by other factors not examined.