The Global Economic Crisis and Its Impact on Bank Lending in Indonesia

Abstract

This study examined the impact of the crisis on bank lending in Indonesia. The crisis was also interacted with profitability and liquidity to see the impact of profitability and liquidity during the global economic crisis on bank lending in Indonesia. This study involves bank specific as control variable and macroeconomic variables. Using panel data, I constructed a panel of 1,372 bank-year observations for 98 banks in Indonesiain the period 2002-2015. The empirical results showed that the profitability proxyed from Return On Asset affected bank lending negatively, but this effect was relatively insigniûcant. The study also found a positive and significant impact between liquidity and bank lending in Indonesia. Meanwhile only GDP which had a significant impact on lending with a positive sign. ABSTRAK Penelitian ini bertujuan menguji dampak krisis terhadap penyaluran kredit bank di Indonesia.Variabel krisis juga diinteraksikan dengan profitabilitas dan likuiditas untuk melihat dampak profitabilitas dan likuiditas selama krisis ekonomi global terhadap penyaluran kredit bank di Indonesia. Penelitian ini juga melibatkan variabel kontrol seperti karakteristik bank dan variabel makroekonomi. Menggunakan data panel, saya menganalisis 1,372 observasi dari 98 bank di Indonesia dari tahun 2002-2015. Hasil kajian empiris menunjukan bahwa profitabilitas yang diproxikan dengan Return On Asset berdampak negatif namun dampaknya tidak signifikan. Penelitian ini juga menemukan adanya dampak positif dan signifikan antara likuiditas dan penyaluran kredit bank di Indonesia. Sementara itu, hanya variabel GDP yang memiliki dampak signifikan terhadap penyaluran kredit dengan arah positif.

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