This research aims to know the influential factors of capital adequacy ratio of Indonesian Commercial Banks that listed on Indonesia Stock Exchange from 2010 until 2014. Technical sampling purposive sampling is used. The independent variable of this study are bank size, loan asset ratio (LAR), equity ratio (EQR), return on asset (ROA), return on equity (ROE), risk asset ratio (RAR), and deposit asset ratio (DAR), while the dependent variable is capital adequacy ratio (CAR). Research method is using linear regression analysis. Results of the study indicate that there is a negative relationship between bank size, RAR and DAR to CAR, there is a positive relationship between LAR and EQR to CAR, and there is no relationship between ROA and ROE to CAR. Implications for managers to increase CAR, managers have to concern about the influential factors of CAR. This aims to increase the quantity of capital requirements by creating more capital, so that it can be useful as the buffer when financial and economic crisis that can interfere financial system stability happen.
Kata Kunci / Keywords:
Capital adequacy ratio, deposit asset ratio, equity ratio, loan asset ratio, return on asset, return on equity, risk asset ratio