| The objective of this study is to examine the effect of bank capitalization rate (Capital Adequacy Ratio or CAR), Return on Asset (ROA), Non Performing Loan (NPL) and Loan to Deposit Ratio (LTD) on Risk Weighted Asset (RWA). The independent variables in this study is based on previous study by Jeitschko dan Jeung (2006), and also based on central bank’s regulation on assessing the soundness of the banks. To test the independent variables, that are CAR, ROA, NPL and LTD against the dependent variable (RWA); this study has collect commercial banks, which has character as the banks with largest asset based in Bank Indonesia during the period of 2007-2008; and also the stocks considered liquid as listed in LQ45. The banks are Bank Mandiri, Bank Rakyat Indonesia, Bank Central Asia, Bank Danamon Indonesia, Bank CIMB Niaga and Bank International Indonesia. The quarterly reports are Balance Sheet, Income Statement and Retained Earning, Commitment and Contigency, and Minimum Capital Requirement. Scopes of data analysis are decriptive analysis and stastistical analysis. The statistical analysis consists of classic asumption tests (normality test, autocorellation test or Durbin Watson, multicollinearity test and homoscedastisity test) and hypotetical tests (t –test and F-test). The result of these tests are, on the partial testing using t-test, it is indicated that only CAR as variabel independent, which has no linear effect on RWA; but others independent variables have. On the F-test, which tests on all independent variables simultaneously agaisnt RWA, has indicated that there is a significat effect of CAR, ROA, NPL dan LTD on ATMR. |