This study examines Agricultural Loans Determinants: Analysis from the Supply and Demand Side with the scope of Indonesia starting from 2012 to 2019. This study uses Error Correction Model (ECM) analysis as an estimation method that shows the effect of the independent variable on the dependent variable in the short term. as well as long term. The results of the study show that in the short term, the variables of CAR, NPL and Inflation have a negative effect on Commercial Bank Loans for the Agricultural Sector, while the variables of TPF, Economic Activity and Loan Interest Rates have a positive effect. On the other hand, in the long term, the variables of DPK, Economic Activity and Loan Interest Rates actually have a negative effect and it is the variables of CAR, NPL and Inflation that have a positive effect on Commercial Bank Loans for the Agricultural Sector.
This study examines the determinant contribution of conventional bank lending for the agricultural sector in Indonesia. The analysis method used in this research is the Vector Correction Model (VECM). The results showed that in the short term, there was no significant effect of the Non-Performing Loan (LogNPL), GDP of Agricultural Sector (LogPDB), and Agricultural Sector Credit Interest Rates (SBK). However, there is an effect of the LogNPL and LogPDB on the conventional bank lending for the agricultural sector in the long term. The LogNPL has a significant positive effect on the contribution of conventional bank lending to the agricultural sector. While the LogPDB has a significant negative effect on the contribution of conventional bank lending for the agricultural sector. The Impulse Response Function (IRF) analysis results show that shocks to the LogNPL respond negatively in the long run, shocks to the LogPDB respond positively in the long run, and shocks to the SBK respond negatively in the long run by conventional bank lending for the agricultural sector. Through the analysis of FEVD (Forecast Error Variance Decomposition), it is known that the biggest contribution to conventional bank lending for the agricultural sector is agricultural credit and GDP.
This study examines Agricultural Loans Determinants: Analysis from the Supply and Demand Side with the scope of Indonesia starting from 2012 to 2019. This study uses Error Correction Model (ECM) analysis as an estimation method that shows the effect of the independent variable on the dependent variable in the short term. as well as long term. The results of the study show that in the short term, the variables of CAR, NPL and Inflation have a negative effect on Commercial Bank Loans for the Agricultural Sector, while the variables of TPF, Economic Activity and Loan Interest Rates have a positive effect. On the other hand, in the long term, the variables of DPK, Economic Activity and Loan Interest Rates actually have a negative effect and it is the variables of CAR, NPL and Inflation that have a positive effect on Commercial Bank Loans for the Agricultural Sector.
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