ANALISIS PENGARUH KARAKTERISTIK BANK DAN INFLASI TERHADAP PROFITABILITAS BANK KONVENSIONAL DI INDONESIA (STUDI PADA BANK KOVENSIONAL YANG TERDAFTAR DI BEI PERIODE 2006-2010)

ABSTRACT Taufik Hidayat, 2012; The Effects of Bank’s Characteristics and Inflation on Conventional Bank’s Profitability in Indonesia (Panel Evidence of Conventional Bank Listed on IDX from the Period 2006-2010). The lecturer advisors ; Dr. Hamidah, SE., M.Si., and Dra. Umi Mardiyati, M.Si. The purpose of this research are: 1) analyzing bank’s characteristics and inflation in Indonesia, 2) analyzing the effects of bank liquidity, capital, efficiency, size and inflation on conventional bank’s profitability in Indonesia. We use sampel of 29 conventional banks listed on IDX over the period 2006-2010. They were selected using the purposive sampling. Financial data for the Indonesian banks obtained from the data base of Bank Indonesia. The results of analyze on Indonesian bank’s characteristics and inflation are ; 1) bank’s net interest margin in Indonesia is high, 2) most of banks are liquid, 3) the capital strength are low, 4) the efficiency is good enough, but it must still be improved, 5) more than a half of the sample are large banks, 6) inflation rate was high in 2008. The model were estimated using fixed effect regression, this preference was based on the use of the Chow test and the Hausman test. The results show that the capital strength and efficiency have positive and statistically significant influence on profitability. The other significant factors are bank liquidity and bank size that have a negative influence on profitability. The results also confirm that inflation has a negative influence on profitability (at level 10%). Key words : profitability, bank’s characteristics, inflation