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Net Interest Margin (NIM) can be seen as the profitability of a company. The higher the NIM, the higher the profitability of the company. However, NIMs can also be seen as bank inefficiencies. Higher net interest margin can reduce potential savers because of the low rate of return on deposits. In addition, this also increases the cost of capital for debtors, thereby reducing the potential investment and economic growth. During the period 1997 to 2005, showed that the average NIM in Indonesia was the highest among other countries in Asia. Central Bank of Indonesia is trying to reduce lending rates and reduce the NIM level to a reasonable level. However, the bankers think that the NIM level in Indonesia cannot be compared to other countries due to inflation and geographical conditions. This study analyzes several factors that influence NIM, including market structure, bank management performance, and risk factors faced by banks. This study uses multiple linear regression with panel data to see the effect of independent variables on the dependent variable. This study uses panel data regression analysis. The results show that NPL has a significant negative effect on NIM. Total asset has a positive and insignificant effect. LDR has a significant positive effect. BOPO has a negative and no significant effect. Equity to total asset ratio has a significant positive effect. And required reserve has a significant negative effect on NIM .The results of this study are expected to be a consideration for Central Bank of Indonesia, as the banking authority to determine the level of NIMs in Indonesia. In addition, this research is expected to be able to increase the banks insight to be able to control the factors that influence the NIM.