Procyclicality Credit in Indonesian Banking Sector

DOI

10.2991/978-2-38476-064-0_31How to use a DOI?

Keywords

Real Credit Growth; Banking Performance; BI Rate; Procyclicality; Real GDP Growth

Abstract

This study aims to analyze procyclicality in credit for the banking sector and how the credit growth and GDP growth respond to banking performance shocks and interest rates. This study used the VAR/VECM method and used time series data with quantitative and descriptive approaches. The results of this show that the long-term relationship for credit growth is significant with BI rate and BOPO and the long-term relationship for GDP growth is significant with BOPO, CAR, LDR, and BI rate. Meanwhile, for the short-term relationship, real credit growth is significant to, LDR, CAR, BI rate and BOPO and for the short-term relationship, GDP growth is significant both to CAR and BOPO.

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.

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TY  - CONF
AU  - Nurbetty Herlina Sitorus
AU  - Mita Yuliana
AU  - Dian Fajarini
PY  - 2023
DA  - 2023/05/30
TI  - Procyclicality Credit in Indonesian Banking Sector
BT  - Proceedings of the International Conference of Economics, Business, and Entrepreneur (ICEBE 2022)
PB  - Atlantis Press
SP  - 286
EP  - 294
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-38476-064-0_31
DO  - 10.2991/978-2-38476-064-0_31
ID  - HerlinaSitorus2023
ER  -