<![CDATA[MSME credit distribution is an important instrument in supporting economic growth in West Kalimantan. This study analyzes the relationship between Third-Party Funds (TPF), MSME Non-Performing Loans (MSME NPL), inflation, and lending interest rates and MSME credit distribution by commercial banks in West Kalimantan during 2015–2025. The study uses quarterly secondary data and applies the Engle-Granger Error Correction Model (ECM) to distinguish short-run dynamics from the long-run relationship. The results show that TPF, MSME NPL, inflation, and lending interest rates are not statistically signifi-cant in the short run. The long-run estimation indicates a positive and statistically signifi-cant relationship between TPF and MSME credit distribution, while MSME NPL, inflation, and lending interest rates are not statistically significant. The Error Correction Term (ECT) is negative and statistically significant at the 10 percent level, indicating an adjustment mechanism toward long-run equilibrium. These findings suggest that MSME credit distribu-tion in West Kalimantan is more closely associated with the availability of bank funding in the long run than with short-run changes in credit risk, inflation, or lending interest rates.]]>
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