ANALYSIS OF RELATIONSHIP OF BANK INDONESIA RATE, PROFIT TARGET, AND COST OF FUND TOWARD INTEREST RATE OF CREDIT (STUDY CASE ON PT. XYZ IN DEPOK PERIOD 2011 - 2013)

Abstract

The Objectives of this research is analyzing the factors that affect the determination of interest rate of credit. The factors in this research are BI Rate, Profit Target, and Cost of Fund. The data for this research is from a motorcycle financing company report period January 2011 until August 2013 on monthly data form. The research method is using multiple regression method. The test that conducted for this research is classical assumption and hypothesis testing, F-test and T-test. The result of the classical assumption test showed that the data is normally distributed and appropriate for multiple regression analysis. The result of F-test is showed that BI Rate, Profit Target and Cost of Fund simultaneously give effect the determination of interest rate of credit. The result of T-Test showed that BI rate and Target profit have significant impact on the determination of interest rate of credit. But, the Cost of Fund has no significant impact on the determination of interest rate of credit. Profit Target is the independent variable that gives the strongest impact on the determination of interest rate of credit.