The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of Use
This research was motivated by the inconsistency of findings and weaknesses in the analysis of bank lending behavior which have been generally measured in previous studies so far. The purpose of this study was to analyze the effect of interest rates, capital adequacy ratio (CAR), loan to deposit ra...
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| Format: | Article |
| Language: | English |
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Pusat Penelitian dan Pengabdian Masyarakat Sekolah Tinggi Ilmu Ekonomi (PPPM STIE)
2021-07-01
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| Series: | Journal of Economics, Business & Accountancy |
| Subjects: | |
| Online Access: | https://journal.perbanas.ac.id/index.php/jebav/article/view/2596 |
| _version_ | 1797323514815971328 |
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| author | Arintoko Arintoko |
| author_facet | Arintoko Arintoko |
| author_sort | Arintoko Arintoko |
| collection | DOAJ |
| description | This research was motivated by the inconsistency of findings and weaknesses in the analysis of bank lending behavior which have been generally measured in previous
studies so far. The purpose of this study was to analyze the effect of interest rates, capital adequacy ratio (CAR), loan to deposit ratio (LDR), inflation, and GDP on bank lending based on the type of use. The data were analyazed using an autoregressive distributed lag (ARDL) model with quarterly data for the period of 2011Q1 - 2020Q1. The results show that investment lending behavior can be explained well by all bank-level and macroeconomic variables for the long run.
Consumer lending behavior is better explained by interest rates, CAR, and macroeconomic variables. Meanwhile, GDP is the only variable that has a significant and positive effect on working capital loans, which means that the behavior of working capital loans is much more influenced by the economic fluctuation as indicated by changes in real GDP. The increase in GDP onsistently encourages the provision of bank lending of all types. Commercial banks in their lending operations need to remain focused on maintaining good CAR and controlled LDR in maintaining liquidity following applicable regulations in line with current macroeconomic conditions. |
| first_indexed | 2024-03-08T05:29:46Z |
| format | Article |
| id | doaj.art-3f466102b90341258942f33685faece2 |
| institution | Directory Open Access Journal |
| issn | 2087-3735 2088-785X |
| language | English |
| last_indexed | 2024-03-08T05:29:46Z |
| publishDate | 2021-07-01 |
| publisher | Pusat Penelitian dan Pengabdian Masyarakat Sekolah Tinggi Ilmu Ekonomi (PPPM STIE) |
| record_format | Article |
| series | Journal of Economics, Business & Accountancy |
| spelling | doaj.art-3f466102b90341258942f33685faece22024-02-06T07:44:02ZengPusat Penelitian dan Pengabdian Masyarakat Sekolah Tinggi Ilmu Ekonomi (PPPM STIE)Journal of Economics, Business & Accountancy2087-37352088-785X2021-07-0124110512010.14414/jebav.v24i1.2596The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of UseArintoko Arintoko 0Universitas Jenderal Soedirman, Purwokerto, Central Java, IndonesiaThis research was motivated by the inconsistency of findings and weaknesses in the analysis of bank lending behavior which have been generally measured in previous studies so far. The purpose of this study was to analyze the effect of interest rates, capital adequacy ratio (CAR), loan to deposit ratio (LDR), inflation, and GDP on bank lending based on the type of use. The data were analyazed using an autoregressive distributed lag (ARDL) model with quarterly data for the period of 2011Q1 - 2020Q1. The results show that investment lending behavior can be explained well by all bank-level and macroeconomic variables for the long run. Consumer lending behavior is better explained by interest rates, CAR, and macroeconomic variables. Meanwhile, GDP is the only variable that has a significant and positive effect on working capital loans, which means that the behavior of working capital loans is much more influenced by the economic fluctuation as indicated by changes in real GDP. The increase in GDP onsistently encourages the provision of bank lending of all types. Commercial banks in their lending operations need to remain focused on maintaining good CAR and controlled LDR in maintaining liquidity following applicable regulations in line with current macroeconomic conditions.https://journal.perbanas.ac.id/index.php/jebav/article/view/2596ardl modelinvestment lendingconsumer lendingworking capital lendingeconomic fluctuation |
| spellingShingle | Arintoko Arintoko The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of Use Journal of Economics, Business & Accountancy ardl model investment lending consumer lending working capital lending economic fluctuation |
| title | The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of Use |
| title_full | The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of Use |
| title_fullStr | The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of Use |
| title_full_unstemmed | The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of Use |
| title_short | The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of Use |
| title_sort | effects of bank level and macroeconomic variables on commercial bank lending based on type of use |
| topic | ardl model investment lending consumer lending working capital lending economic fluctuation |
| url | https://journal.perbanas.ac.id/index.php/jebav/article/view/2596 |
| work_keys_str_mv | AT arintokoarintoko theeffectsofbanklevelandmacroeconomicvariablesoncommercialbanklendingbasedontypeofuse AT arintokoarintoko effectsofbanklevelandmacroeconomicvariablesoncommercialbanklendingbasedontypeofuse |