PENGARUH NILAI KECUKUPAN MODAL, INFLASI, LIKUIDITAS, DAN RISIKO KREDIT TERHADAP PROFITABILITAS PERBANKAN

Abstract

The financing, kinds of institution which has important role in economics development. This institution aims to gather public funds which are returned loan. While, the continuity of loan give positive effect on society economy development. That point, this research aimed to find out the effect of capital adequacy value, inflation, liquidity, and loan risks on profitability (ROA) as its financing effectivity indicators. The sampling collection technique used purposive sampling in Financing companies which were listed on Indonesia Stock Exchange 2014-2017. While, based on criteria given, 33 Financing companies. Futhermore, the instrument used SPSS. The result concluded the capital adequacy significantly effect on profitability. It meant, the higher the capital adequacy was, the more effort used, in anticipating loss potency which caused by lending. On the other hand, the inflation had insignificant effect on profitability. In other words, the high cost of inflation could affect the decline of real sector economy and incomes. Moreover, the liquidity had significant effect on profitability. It meant, as the third parties fund was not be lent, the bank had its own loss. Likewise, the loan risks had significant effect on profitability. In the words, the higher loan risks indirectly affected on the loan decline.
Keywords : Inflation, Liquiditym Loan Risks, Profitability.