THE INFLUENCE OF BANK FINANCIAL RATIOS ON NET INTEREST MARGIN : A CASE STUDY OF BANK TABUNGAN PENSIUNAN NASIONAL

Abstract

The purpose of this study was to analyze the determinants of net interest margin of Bank Tabungan Pensiunan Nasional The dependent variable in this study was the net interest margin (NIM), and the independent variable were credit risk as proxied by the ratio of non-performing loan (NPL), efficiency ratio, risk aversion as proxied by capital adequacy ratio (CAR), and transaction size as calculated by the logarithm of total loans. The study for this research were 6 (six) years, from 2010-2015. This study uses quantitative research, which uses some analysis such as descriptive statistics analysis, classical assumption, multiple regression analysis and hypothesis testing. This research aims to analyze and proven the significant influences in partial and simultaneously of efficiency ratio, CAR, NPL and transaction size on NIM. This research uses SPSS 16.0 as the statistical tool to process the data. From this study, it found that efficiency ratio, CAR and transaction size is significantly influence to net interest margin. The four independent variables indicated to influence net interest margin as much as 63.1%, and the remaining was influenced by other variables.