DETERMINAN PROFITABILITAS BANK DI INDONESIA (STUDI KASUS BANK YANG GO PUBLIC TAHUN 2002:1-2009:4)

Determinant of bank profitability is essential for economic stability, because profitability is the standard to measure performance of the Bank. Banks are able to produce a profit, meaning that bank acts as financial intermediaries, which is to connect customers with surplus capital to the customer with deficit capital for productive enterprise, so the economy can grow. Bank profitability measured by ROA (return on asssets). Bank profitability is influenced by various factors. Generally, bank profitability is influenced by internal factors and external factors. In 2005, 2006, and 2008, bank profitability as measured by ROA has decreased. The further research is conducted to determine factors affect the profitability of banks declined, so that the profitability of the bank can be improve continously. The purpose of this study is to analyze the internal factors and external factors affecting the profitability of go public banks in Indonesia. Data used in this research are panel data. Before analyzing the data, panel data was tested to know whether the data is stationary or not using the unit root test. The panel data was stationary is used for analysing data. The analysis tool is the selection of the best model between pooled least squares model/common effect, fixed effect model and random effects model. Limited access to data led to the period of observation in this study between 2002:1-2009:4 In this study, a random effects model is the best model. The results showed that internal factors affect the profitability of go public banks in Indonesia is the capital factor (CAR), the operational cost factor (BOPO), and fee based income factor (FBIR). Fee based Income factor is the most dominant factor affecting bank profitability. External factors affecting the profitability of go public banks in Indonesia is real interest rates (SBR) and economic growth (GDP)