The Global Economic Crisis and Its Impact on Bank Lending in Indonesia
Journal Title: Jurnal Keuangan dan Perbankan - Year 2017, Vol 21, Issue 4
Abstract
This study examined the impact of the crisis on bank lending in Indonesia. The crisis was also interacted with profitability and liquidity to see the impact of profitability and liquidity during the global economic crisis on bank lending in Indonesia. This study involves bank-specific as a control variable and macroeconomic variables. Using panel data, I constructed a panel of 1,372 bank-year observations for 98 banks in Indonesia in the period 2002-2015. The empirical results showed that the profitability proxied from Return On Asset affected bank lending negatively, but this effect was relatively insigniûcant. The study also found a positive and significant impact between liquidity and bank lending in Indonesia. Meanwhile, the only GDP which had a significant impact on lending with a positive sign.
Authors and Affiliations
Rizky Yudaruddin
Keywords
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