THE EFFECT OF GROSS DOMESTIC PRODUCT AND INTEREST RATES ON CREDIT DEMAND

Abstract

In Indonesia, bank banking is very meaningful for example in terms of development. This is because
banks can influence the overall economic cycle. The increase in demand for bank credit has resulted in
increased purchasing power, increased business enthusiasm and an investment bonus. Which in
conclusion will produce the Multiplier Effect. The multiplier effects include the addition of new
business establishments, additional workforce, increased demand for raw materials, increased
production output and increased purchasing power which will affect future economic growth. The
research has the objective of explaining the Effect of Gross Domestic Product and Interest Rates on Credit
Demand. This research uses descriptive quantitative research methods and uses multiple regression which
can see the effect of Gross Domestic Product and Interest Rates on Credit Demand. In this study, it
was found that the Gross Domestic Product has an influence on the demand for credit, while the interest
rate has no influence on the demand for credit.