Analysis of the effect of capitaland profitability in the implementation of banking intermediation

The aim of this study was to analyze the factors that affect the implementation of banking intermediation include Capital and Profitability. The methods used are descriptive and verificative, with secondary data from financial statements all over 26 Indonesian Regional Development Banks as a research object’s units. Data analysis technique is the multiple linear regression, hypothesis testing while using t - test to examine the effect of partial variables and test - F to examine the effect of variables simultaneously with a significance level of 5 %.Based on the results it is concluded that partial CARhave negative effect but no significant effects on LDR. While the ROAhas positiveand significant effect to LDR. Simultaneously CAR and ROA significantly influence the level of influence of LDR with 34.9% and the remaining 65.10% thought to be influenced by other variable not examined in this study.