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Priviet Social Sciences Journal
Published by PRIVIETLAB
ISSN : 2798866X     EISSN : 27986314     DOI : 10.55942/pssj
PSSJ: Priviet Social Sciences Journal is an open access, monthly peer-reviewed international journal published by PRIVIETLAB. It provides an avenue to academicians, researchers, managers and others to publish their research work that contributes to the knowledge and theory of Social Sciences. PSSJ is published twelve a year. Publisher of Open Access Journals & Books designed to make it easy for worldwide researchers to discover leading-edge scientific research. Working closely with the global scientific community has been at the heart of our book and journal publishing activity. With a portfolio including journals, books, conference proceedings, we focus on Social Sciences and many more. PRIVIETLAB also publishes on behalf of other scientific organizations and represents their needs and those of their members. With worldwide impact, we support researchers, librarians and societies in their endeavours. PRIVIETLAB is an international center for supporting distinguished researchers, teachers, scholars and students who are researching various areas of Business, Science, and Technology. PRIVIETLAB wishes to provide good chances for academic and industry professionals to discuss recent progress in various areas of Business, Science, and Technology. PRIVIETLAB organizes many international conferences, symposia and workshops every year, and provides sponsor or technical support to researchers who wish to organize their own conferences and workshops.
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Determinants of Credit Disbursement in Small Indonesian Commercial Banks: An ARDL Cointegration Analysis Adriansyah, Safri; Pangestuty, Farah Wulandari
Priviet Social Sciences Journal Vol. 6 No. 5 (2026): May 2026
Publisher : Privietlab

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55942/pssj.v6i5.1879

Abstract

This study investigates the determinants of credit disbursement in small commercial banks in Indonesia, highlighting their essential role in economic growth. It focuses on banks with core capital below IDR 6 trillion and examines key variables such as credit interest rates, inflation, exchange rates, and shadow banking. Despite theoretical expectations of proportional credit growth across banks, a paradox emerges: while large banks show an upward trend in credit disbursement, small banks face stagnation or decline. Unlike previous research, this study incorporates shadow banking as a determinant, offering a more comprehensive perspective on the macroeconomic, microeconomic, and institutional factors influencing credit distribution. To analyze these relationships, the study employs the Autoregressive Distributed Lag (ARDL) approach, which captures both short- and long-term effects while addressing variations in data stationarity. The findings reveal that most variables significantly impact long-term credit disbursement, whereas short-term effects differ across variables. This underscores the complex operational landscape of small banks. Notably, shadow banking exerts a substantial influence in both the short and long run, further shaping credit dynamics. Based on these insights, the study recommends that small banks diversify their services and strengthen strategic collaborations to enhance credit accessibility and financial stability.

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