Jurnal Keuangan dan Perbankan
Vol 21, No 4 (2017): October 2017

The Global Economic Crisis and Its Impact on Bank Lending in Indonesia

Rizky Yudaruddin (Department of Management, Faculty of Economics and Business, University of Mulawarman Jl.Tanah Grogot No.1, Samarinda, 75119)



Article Info

Publish Date
28 Nov 2017

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 insigniƻcant. 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.DOI: https://doi.org/10.26905/jkdp.v21i4.1513

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