Procyclicality Credit in Indonesian Banking Sector

Nurbetty Herlina Sitorus (), Mita Yuliana and Dian Fajarini
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Nurbetty Herlina Sitorus: Lampung University, Economics
Mita Yuliana: Lampung University, Economics
Dian Fajarini: Lampung University, Economics

A chapter in Proceedings of the International Conference of Economics, Business, and Entrepreneur (ICEBE 2022), 2023, pp 286-294 from Springer

Abstract: 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.

Keywords: Real Credit Growth; Banking Performance; BI Rate; Procyclicality; Real GDP Growth (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-2-38476-064-0_31

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DOI: 10.2991/978-2-38476-064-0_31

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