Interest Rates and Inflation as Determining Factors of Saving in Central Sulawesi Banks

Andi Herman Jaya,Tasrina Sari Tolla,Anwar Nasruddin,Ahmad Syatir,Novita Sari,Haerul Anam

doi:10.13189/ujaf.2021.090401

Abstract

This study aims to analyze the effect of the Central Bank, which is in Indonesia presented by Bank Indonesia (BI) Rate and inflation rate on the savings rate at commercial banks in Central Sulawesi by using the analysis tools of autoregressive conditional heteroscedasticity (ARCH) and generalized autoregressive conditional heteroscedasticity (GARCH). The results of the analysis show that the BI Rate and inflation have significant effects on saving rate at commercial banks in Central Sulawesi. The importance of being a source of investment funds to support development activities can be a consideration for the government to formulate a policy for allocating investment from these savings funds for productive sectors. Practically, it is hoped that the distribution of savings through investment activities can encourage economic growth and increase economic development in Central Sulawesi.

Highlights

Introduction countryThe development of the inflation rate in CentralCommercial Bank has a very important role in moving Sulawesi in 2010-2014 experienced fluctuating the wheels of Indonesian economy, because more than 95% movements
In 2010 the inflation rate in the province of of the third-party fund of national banking is in Central Sulawesi was 6.40%
The development of banking has an important role in supporting the economic growth of a country or region

Summary

Introduction

The development of the inflation rate in Central. Commercial Bank has a very important role in moving Sulawesi in 2010-2014 experienced fluctuating the wheels of Indonesian economy, because more than 95% movements. In 2010 the inflation rate in the province of of the third-party fund of national banking is in Central Sulawesi was 6.40%. The amount of commercial bank decreased to 5.87%. In 2013 the inflation rate has savings in Central Sulawesi Province, in 2010 was increased to 7.57%, and for 2014 the inflation rate has. In 2012, third party funds for increased again by 8.85% [2]

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Conclusion