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Journal : Economics Development Analysis Journal

Impact of Inflation, Interest Rates, And Money Supply on Deposit Funds Yayan Luthfi Khoirina; Yuniar Farida; Moh. Hafiyusholeh; Hani Khaulasari
Economics Development Analysis Journal Vol. 13 No. 4 (2024): Economics Development Analysis Journal
Publisher : Universitas Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v13i4.13910

Abstract

Deposits are straightforward investment instruments that offer fixed interest over a specified period, serving as a profitable product for banks. They play a crucial role in supporting banking operations, particularly within the internal scope of the institution. This study aims to examine the causal relationships between deposit interest rates, inflation, and money supply on the total deposits held by banks. A Vector Error Correction Model (VECM) is employed to investigate these relationships in both the short and long term. The analysis reveals that inflation and money supply significantly influence the volume of deposits in the short term. Conversely, deposit interest rates do not exhibit a substantial short-term impact on the total funds deposited. In the long term, all independent variables—deposit interest rates, inflation, and money supply—demonstrate a considerable effect on the amount of deposited funds. These findings provide valuable insights for banks, enabling them to optimize their funding strategies through deposit products while addressing challenges posed by macroeconomic fluctuations
Co-Authors Abdul Muhid Abdulloh Hamid Achmad Teguh Wibowo Adam Fahmi Khariri Afanin Hamidah Ahmad Hanif Asyhar Ahmad Teguh Wibowo Ahmad Zaenal Arifin Ainiyah, Lailatul Akbar, Fadilah Ambadar, Panreshma Rizkha Aris Fanani Auditiyah, Cellyn Desinaini, Latifatun Nadya Diah Ayu Sulistiani Dian C Rini Dian C. Rini Novitasari Dian Yuliati Dwi Puspitasari Efendi, Havid FAJAR SETIAWAN Fanani, Aris Farmita, Mayandah Ferdani, Ayu Fifi D. Rosalina Galuh Andriani Ghina Salsabila Firdaus Hani Khaulasari Husna Nur Laili Ida Purwanti Khasanah, Zhara Shafira Uswatun Latifatun Nadya Desinaini Latifatun Nadya Desinaini Lubab, Ahmad Luluk Mahfiroh LULUK WULANDARI Lutfi Hakim M Mahaputra Hidayat Mahfiroh, Luluk Maulida, Eka Agustina Mayandah Farmita Moh. Hafiyusholeh Moh. Hartono Monike Febriyani Faris Montolalu, Billy Nadiyah, Fithrotun Nanda, Nafa Nur Adifia Novitasari, Dian C Rini Nurfadila, Monika Refiana Nurissaidah Ulinnuha Pramesti, Diah Devi pratiwi, Yuniar Ines Purwanti, Ida Putra Prima Arhandi, Putra Prima Putri Krismadewi Putroue Keumala Intan Saidah, Nayla Fitriyatus Saputra, Yahya Vigo Tri Sari, Dian Candra Rini Novita Sari, Ghaluh Indah Permata Sari, Silvia Kartika Silvia Kartika Sari Silvia Kartika Sari Silvia Kartika Sari Siti Nur Aisah Swantika, Cicik Tiarra Dellaviyanie Muryanto Tiasti, Roro Niken Enggar Utami, Tri Mar'ati Nur Vianti, Febi Wika Dianita Utami Wika Dianita Utami Yayan Luthfi Khoirina Yuliati, Dian Yusi, Suyesti Zaen, Nanida Jenahara Zaidatun Ni'mah Zainullah Zuhri