THE INFLUENCE OF TOTAL THIRD PARTY FUNDS AND INFLATION ON THE ALLOCATION OF FINANCING FOR MICRO, SMALL AND MEDIUM ENTERPRISES AT BANK SUMUT SYARIAH MEDAN KATAMSO BRANCH

Abstract

This study aims to determine the effect of the amount of third-party funds and inflation on the allocation of financing for micro, small and medium enterprises at the Sharia Bank of North Sumatra, Medan Katamso branch. This study uses a quantitative method and uses secondary data on the monthly financial reports of Bank Sumut Syariah which were published for 2018-2022, and BPS data for 2018-2022. Data is processed through the SPSS 25 program with multiple linear regression methods, with consideration of R2, T-test, F-test, and classical assumption tests. The results of this study indicate that Third Party Funds (DPK) have a positive effect on the allocation of MSME financing at PT Bank SUMUT Syariah Medan Katamso of (0.872) with a very large value in the 2018-2022 period. Inflation has a positive and small effect on the allocation of MSME financing for PT Bank SUMUT Syariah Medan Katamso during the 2018-2022 period, amounting to (0.083). Simultaneously DPK (Third Party Funds), Inflation has a significant effect on the MSME financing allocation of PT Bank SUMUT Syariah Medan Katamso during the 2018-2022 period