<![CDATA[This study was conducted to examine the impact of the banking sector’s role—through the provision of business loans and the mobilization of public savings—on the development of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia during the 2018–2023 period. The method used is a quantitative approach utilizing secondary data sourced from the Central Statistics Agency (BPS) and various other supporting sources. Data processing was performed using multiple linear regression analysis with the assistance of SPSS software. The results indicate that business credit has a positive and significant impact on MSME growth, as evidenced by a significance value of 0.013 and a regression coefficient of 1.951. On the other hand, public savings were also found to have a significant effect on SME growth with a significance value of 0.021; however, the direction of the relationship is negative, as reflected by a regression coefficient of -0.838. Together, the variables of business credit and public savings have a significant effect on SME growth, as indicated by an F-test significance value of 0.025. The coefficient of determination (R²) of 0.915 indicates that 91.5% of the variation in SME growth can be explained by these two variables. The results of this study confirm that the banking intermediation function plays a crucial role in driving SME development through the provision of productive, targeted, and sustainable financing. ]]>
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