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The Relationship between Banking Credit and Poverty Levels in Indonesia Danang Adi Surya; Setyowati, Eni
JURNAL MANAJEMEN MOTIVASI Vol 22 No 1 (2026): Jurnal Manajemen Motivasi
Publisher : Universitas Muhammadiyah Pontianak

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29406/jmm.v22i1.8624

Abstract

The banking sector plays a strategic role in Indonesia’s economy, acting as a financial intermediary and driver of poverty reduction. This study examines the relationship between bank credit and poverty levels in both urban and rural areas across Indonesia. Using a descriptive-quantitative method and Spearman Rank Correlation on 2000–2023 BPS data, the findings show a significant negative correlation between bank credit and poverty (Sig. 0.00) in all areas. These results highlight bank credit as a key factor in poverty alleviation, underscoring the need to expand public access to financial services.