ANALYSIS OF FACTORS THAT AFFECT MSME CREDIT IN STATE-OWNED BANKS PERIOD 2008 – 2012

Abstract

The researcher would like to present a research regarding the factors that affect MSME Credit in state-owned banks period 2008 – 2012. Based on this research, researcher tries identifying the effect between CAR (Capital Adequacy Ratio), LDR (Loan to Deposit Ratio), NPL (Non-Performing Loan), OCOI (Operational Cost Operational Income), ROA (Return on Assets), and INF (Inflation) to MSME Credit in state-owned banks (PT Bank Mandiri Tbk, PT BRI Tbk, PT BNI Tbk, PT BTN Tbk). Data used in this research is secondary data was obtained from the monthly report of Indonesian Financial Statistic, Bank Indonesia during 2008 – 2012. This research use multiregression model where those are data had been tested by using the classic assumption test, such as: normality, autocorrelation, multicollinearity, and heteroscedasticity tests. The classic assumption tests indicate that the available data have fulfill the condition to use multiregression model. Empirical evidence show as CAR, LDR, NPL, OCOI, ROA, and INF are significant entirely to MSME Credit. However, in partially CAR, LDR, NPL, OCOI, and ROA are significant to MSME Credit, while on the other hand INF is not significant to MSME Credit.