ANALYSIS OF THE INFLUENCE OF CAR, NPL, LDR AND INTEREST RATE TOWARDS SMALL AND MEDIUM ENTERPRISE LENDING ON CIMB NIAGA BANK PERIOD 2006-2013

Abstract

SME (Small Medium Enterprise) is a form of business activities that are familiar in the sphere of economy The objective of this study are to analyze the influence of CAR, NPL, LDR and Interest rate toward Small and Medium Enterprise Lending on CIMB Niaga Bank in Indonesia. This research is quantitative research using secondary data gotten from financial report of CIMB Niaga Bank. The methid of data anaalysis used descriptive analysis and multiple regressions analysis that calculated by SPSS program version 16.0 for windows. The test result is the data has normal distribution, it showed from the plots that got from the normality test, which is the data spread near the diagonal line. There is no multicollinearity in empiric test model. This showed from the tolerance value of all independent variables that more than 0,1, and the VIF value has value less than 10. The test result showed there is no autocorrelation, this test showed with DW value is between du and (4-du). The scatterplot test showed there is no heterostedasticity, this proved with the plots are spread above and below “zero” in Y-axis. The research result also showed that (1) CAR has positive and significant effect on SME lending, (2) NPL has positive and no significant effect on SME lending, (3) LDR has positive and significant effect on SME lending, and (4) Interest Rate has positive and significant effect on SME lending. Simultaneously, CAR, NPL, LDR and Interest Rate has significant effect on SME lending. Estimated regression result showed the prediction ability from all independent variables toward SME lending is 68.6%, while the other 31.4% influenced by other variable that not included in this research.