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

Rizky Yudaruddin


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 a control variable and macroeconomic variables. Using panel data, I constructed a panel of 1,372 bank-year observations for 98 banks in Indonesia in the period 2002-2015. The empirical results showed that the profitability proxied 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, the only GDP which had a significant impact on lending with a positive sign.



Crisis; Lending; Liquidity; Profitability

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Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

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