THE IMPACT OF MONETARY POLICY ON BANK CREDIT DURING ECONOMIC CRISIS: INDONESIA’S EXPERIENCE
The monetary policy mechanism by which monetary policy was transmitted to thereal economy had emerged as the pivotal discussion topic recently. This paper tried to discussthe impact of Bank Indonesia’s monetary policy on loan bank. By using simple loan bankframework we concluded that monetary polici...
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| Format: | Article |
| Language: | English |
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Universitas Merdeka Malang
2017-03-01
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| Series: | Jurnal Keuangan dan Perbankan |
| Subjects: | |
| Online Access: | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/876 |
| _version_ | 1823933437780688896 |
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| author | Abdul Mongid |
| author_facet | Abdul Mongid |
| author_sort | Abdul Mongid |
| collection | DOAJ |
| description | The monetary policy mechanism by which monetary policy was transmitted to thereal economy had emerged as the pivotal discussion topic recently. This paper tried to discussthe impact of Bank Indonesia’s monetary policy on loan bank. By using simple loan bankframework we concluded that monetary policies were able to influence loan bank. Themonetary variables such as discount rate policy, base money and exchange rate policy werevery important in determining the banking credit. As the credit was very important to influencesthe economic activitiy, the result provided evidence that monetary policy was important as atool to control economic activity via credit channel. The validity of this study challenged thehypotheses that monetary policy was death. However, monetary policy maker should carefullyconsider the soundness of the banking industry because it was a strategic partner for monetaryauthority to control the economic activities. |
| first_indexed | 2024-12-16T22:05:43Z |
| format | Article |
| id | doaj.art-0b9c5524b0d448e390855b6aedebe33b |
| institution | Directory Open Access Journal |
| issn | 1410-8089 2443-2687 |
| language | English |
| last_indexed | 2024-12-16T22:05:43Z |
| publishDate | 2017-03-01 |
| publisher | Universitas Merdeka Malang |
| record_format | Article |
| series | Jurnal Keuangan dan Perbankan |
| spelling | doaj.art-0b9c5524b0d448e390855b6aedebe33b2022-12-21T22:14:29ZengUniversitas Merdeka MalangJurnal Keuangan dan Perbankan1410-80892443-26872017-03-01121100110595THE IMPACT OF MONETARY POLICY ON BANK CREDIT DURING ECONOMIC CRISIS: INDONESIA’S EXPERIENCEAbdul Mongid0Center for Monetary and Banking Studies STIE PERBANAS Surabaya Indonesia Jl. Nginden Semolo No 36 SurabayaThe monetary policy mechanism by which monetary policy was transmitted to thereal economy had emerged as the pivotal discussion topic recently. This paper tried to discussthe impact of Bank Indonesia’s monetary policy on loan bank. By using simple loan bankframework we concluded that monetary policies were able to influence loan bank. Themonetary variables such as discount rate policy, base money and exchange rate policy werevery important in determining the banking credit. As the credit was very important to influencesthe economic activitiy, the result provided evidence that monetary policy was important as atool to control economic activity via credit channel. The validity of this study challenged thehypotheses that monetary policy was death. However, monetary policy maker should carefullyconsider the soundness of the banking industry because it was a strategic partner for monetaryauthority to control the economic activities.http://jurnal.unmer.ac.id/index.php/jkdp/article/view/876monetary policy, credit crunch, bank lending |
| spellingShingle | Abdul Mongid THE IMPACT OF MONETARY POLICY ON BANK CREDIT DURING ECONOMIC CRISIS: INDONESIA’S EXPERIENCE Jurnal Keuangan dan Perbankan monetary policy, credit crunch, bank lending |
| title | THE IMPACT OF MONETARY POLICY ON BANK CREDIT DURING ECONOMIC CRISIS: INDONESIA’S EXPERIENCE |
| title_full | THE IMPACT OF MONETARY POLICY ON BANK CREDIT DURING ECONOMIC CRISIS: INDONESIA’S EXPERIENCE |
| title_fullStr | THE IMPACT OF MONETARY POLICY ON BANK CREDIT DURING ECONOMIC CRISIS: INDONESIA’S EXPERIENCE |
| title_full_unstemmed | THE IMPACT OF MONETARY POLICY ON BANK CREDIT DURING ECONOMIC CRISIS: INDONESIA’S EXPERIENCE |
| title_short | THE IMPACT OF MONETARY POLICY ON BANK CREDIT DURING ECONOMIC CRISIS: INDONESIA’S EXPERIENCE |
| title_sort | impact of monetary policy on bank credit during economic crisis indonesia s experience |
| topic | monetary policy, credit crunch, bank lending |
| url | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/876 |
| work_keys_str_mv | AT abdulmongid theimpactofmonetarypolicyonbankcreditduringeconomiccrisisindonesiasexperience AT abdulmongid impactofmonetarypolicyonbankcreditduringeconomiccrisisindonesiasexperience |