EFFECT OF MACROPRUDENTIAL POLICY INSTRUMENTS ON CREDIT GROWTH FOR COMMERCIAL BANKS IN INDONESIA

  • Afidah Nur Aslamah Faculty of Economics, Universitas Negeri Jakarta, Indonesia
  • Aditya Pratama Faculty of Economics, Universitas Negeri Jakarta, Indonesia
Keywords: Statutory Reserves, Macroprudential Intermediation Ratio, Credit Growth, Capital Buffer

Abstract

The Indonesian economy experienced a deep contraction in 2020 due to the COVID-19 pandemic.
The economic growth rate took a sharp dip at -5.32% in the first quarter based on data from BPS. One of
the impacts is the decline in credit growth in the banking sector, which grew only 0.12% per August.
The government is trying to control the rate of credit growth by introducing policies in the monetary
sector, namely a change in the statutory reserve requirement (GWM) from 8% to 4% in order to
maintain banking liquidity. The purpose of this study was to analyze the effect of the statutory
reserve requirement, Macroprudential Intermediation Ratio (MIR), and capital buffer on
the growth of commercial bank credit in Indonesia 2019-2020. The data used is monthly data from the
Indonesian Banking Statistics on the website of the Financial Services Authority. The statistical method
used in this study is the multiple linear regression method with E-Views SV.11 software to perform the
three hypothesis tests. The results of the study partially show that the reserve requirement has a
negative and insignificant effect on commercial bank credit growth. MIR and capital buffer have a
significant effect, but MIR has a negative effect and capital buffer has a positive influence on commercial
bank credit growth.

Published
2021-08-31
How to Cite
Aslamah, A. N., & Pratama, A. (2021). EFFECT OF MACROPRUDENTIAL POLICY INSTRUMENTS ON CREDIT GROWTH FOR COMMERCIAL BANKS IN INDONESIA. Jurnal Pendidikan Ekonomi, Perkantoran, Dan Akuntansi, 2(2), 1-8. Retrieved from https://journal.unj.ac.id/unj/index.php/jpepa/article/view/30032

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