Bank Capital Buffer Model and Monetary Policy Approach to Non-performing Loans in Indonesia
- DOI
- 10.2991/978-2-38476-046-6_28How to use a DOI?
- Keywords
- RR-LDR; bank capital buffer; credit interest rates; gross domestic product; credit growth
- Abstract
The economic and monetary crisis will greatly affect the economic growth of a country. In practice, there are many conditions and factors that can make the provision of credit detrimental to the banking sector. Therefore, the monetary and banking authorities has made various efforts to avoid systemic risks from lending. This study aims to examine the important role of bank capital buffers, RR-LDR policies, Gross Domestic Product, credit interest rates and credit growth in Indonesia on Non Performing Loan from 2012 to 2020. The model used<!-- Query ID="Q1" Text="<!-- Query ID="Q2" Text="Please check and confirm if the authors given and family names have been correctly identified." --> is panel data analysis with cross section data of conventional banks listed in book four according to Bank Indonesia’s classification. The results of this study indicate that the bank's capital buffer, GDP and credit interest rates have a significant positive effect on bank credit in Indonesia. On the other hand, RRLDR and credit growth have a negative effect on credit growth.
- Copyright
- © 2023 The Author(s)
- Open Access
- Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
Cite this article
TY - CONF AU - Muhammad Husaini AU - Nurbetty Herlina Sitorus AU - Emi Maimunah PY - 2023 DA - 2023/05/02 TI - Bank Capital Buffer Model and Monetary Policy Approach to Non-performing Loans in Indonesia BT - Proceedings of the 3rd Universitas Lampung International Conference on Social Sciences (ULICoSS 2022) PB - Atlantis Press SP - 287 EP - 294 SN - 2352-5398 UR - https://doi.org/10.2991/978-2-38476-046-6_28 DO - 10.2991/978-2-38476-046-6_28 ID - Husaini2023 ER -