Abstract
Bank behavior, financial literacy, financial inclusion, debt behavior, and investment affect the economic growth of an industry. The purpose of this research is to examine the effect of bank behavior, financial literacy, financial inclusion, debt behavior on investment decisions of working capital and investment debtors in the Regional Development Bank of Yogyakarta. Indonesia. Examine the mediating role of financial inclusion, debt behavior on investment decisions. The research sample are 280 debtors. The analysis model used mediation regression with the PLS program. The results showed that: Bank behavior has an effect on financial inclusion. Bank behavior has an effect on debt behavior. Financial literacy has an effect on financial inclusion. Financial literacy has an effect on debt behavior. Financial inclusion mediates the effect of bank behavior on investment decisions. Debt behavior mediates the effect of financial literacy on investment decisions. The managerial implication of this research is: the flexibility of providing credit to customers, must be followed by control of the use of funds. Financial literacy, financial inclusion and higher debtor debt behavior will increase the movement of the industry. The right investment will improve entrepreneurial and banking performance.
Highlights
The loan to deposits ratio in Yogyakarta tends to be low, around 63%-70%
This study used a sample of debtors of the Regional Development Bank of Yogyakarta Indonesia
The results show that bank behavior, financial literacy have an effect on financial inclusion
Summary
The loan to deposits ratio in Yogyakarta tends to be low, around 63%-70%. Loan to deposits ratio in Yogyakarta Banking is low because people save more money than use it in the form of credit. The decline in credit growth was caused by the impact of global conditions and the Covid-19 pandemic. These conditions affect investment and business expansion in Yogyakarta Indonesia (BI Yogyakarta Indonesia, 2021). Consumption credit is not purely for household needs, and for business capital for Micro, Small and Medium Enterprises. The amount of financing is channeled to Cooperatives and Micro, Small and Medium Enterprises in Yogyakarta. The amount of financing has increased from 2018, 2019 and in 2021.
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