Credit Interest Rates Research Articles

The Influence of Fiscal and Monetary Policy on Indonesia's Economic Growth

The government has two policies in promoting economic growth, namely monetary policy, and fiscal policy. The purpose of this research is to see the extent to which the effectiveness of fiscal and monetary policies in influencing economic growth in Indonesia, as well as to see the effect of unemployment and investment in mediating the relationship between the dependent variables (taxes, government spending, credit interest rates, and the money supply) on economic growth. in Indonesia for the period 2000-2019. The research approach uses a quantitative approach which is carried out in the form of path analysis with time-series data in the annual period, namely from 2000 to 2019. The data used is secondary data obtained from various sites of the Indonesian Central Statistics Agency, Bank Indonesia, World Bank, etc. The results of this study are direct taxes and government spending have a positive effect on economic growth, but credit interest rates and the money supply have a negative effect. While the indirect effect of taxes and government spending on economic growth through unemployment and investment has a negative effect, interest rates and the money supply have a positive effect.

Macroeconomic Determinants of Household Debt in OECD Countries

This article investigates the macroeconomic determinants of household debt in developed economies using a sample comprising 26 OECD countries for the period of 2002q1–2020q4. By resorting to the unconditional quantile regression, we find relevant asymmetries in the response of household debt. According to our results, economic growth leads to lower household debt, but the beneficial effect decreases as the level of household debt increases. Inflation lowers household borrowing only if the level of debt is high. Higher house prices lead to higher household debt, with the impact becoming stronger as the level of debt is higher. Investments go hand in hand with household debt, and higher investments lead to higher levels of borrowing, even when household debt is already high. Mortgage credit interest rates are positively linked with household debt, starting with higher debt levels. A rising unemployment rate leads to lower household debt, but the link becomes weaker as the level of debt increases. Higher public expenditures are generally associated with lower household debt. In addition, we find that household debt exhibits very powerful autoregressive behavior, being difficult to reduce rapidly in the case of need.

The Effect of Savings Growth, Deposits, Credit, Credit Interest Rate and Cash Turnover on Profit Growth in Savings and Loans Cooperative in North Denpasar Year 2017 – 2019

This study aims to examine and obtain empirical evidence from the effect of savings growth, deposits, credit, credit interest rates and cash turnover on profit growth in Savings and Loans Cooperatives in North Denpasar in 2017-2019. The population of the data in this study were all Savings and Loans Cooperatives located in North Denpasar and registered with the Denpasar City Cooperatives and Micro Small Medium Enterprises (MSME) Service in 2017-2019. The sample were select by used purposive sampling method. The sample in this study were 16 cooperatives with 48 observations. Multiple linear regression analysis is needed to process the data in this study. And the research results are obtained as follows: saving growth variable, deposit growth and cash turnover have no effect on profit growth, while credit growth and credit interest rates have a positive effect on profit growth. The implication of this research is that the sample selection is limited to one area, namely North Denpasar, so the results cannot be generalized and are limited to the form of savings and loan cooperatives only.

ВЛИЯНИЕ ИНФЛЯЦИИ НА РЕАЛЬНЫЕ НАЛОГОВЫЕ ОБЯЗАТЕЛЬСТВА В МИРОВОЙ ЭКОНОМИКЕ

Inflation rates are rising due to several economic factors, and the continuous and rapid growth of these rates has a negative impact on the economy, including the weakening of the national currency, the increase in the cost of imports, the decrease in the purchasing power of individuals, high credit costs and interest rates, etc., here we highlight the effect of inflation on taxes, as high levels of inflation affect real tax liabilities and this is precisely what happens because of the depreciation of the national currency.

Adjustment Effect and Optimization Strategy of Credit Structure under the Double Carbon Goal—Research Based on the Power Industry

This paper focuses on the power industry in China, through the construction of production function model, solves the optimization problem of high-carbon and low-carbon enterprises in power industry, and discusses the adjustment and optimization strategy of credit structure in it. The highlight of the article is to look at the impact of the inclination of credit resource allocation to the green and low-carbon field from a more holistic and dialectical perspective. Research shows that the credit mortgage rate adjustment policy is more conducive to the withdrawal of backward production capacity in high-carbon industries, while the interest rate policy is more conducive to expanding production capacity by supporting technological progress in new industries. When adjusting the high-carbon and low-carbon credit interest rates, adopting the “small-then-large” interest rate adjustment path with a gradually increasing range is more conducive to realizing the industrial structure adjustment and ensuring the power capacity supply at the same time. Therefore, in order to avoid the phenomenon of “moving carbon reduction” under the dual carbon goal, banks can consider the strategy of “focusing on interest rate instruments in the early stage and mortgage rate control in the middle and late stages” when formulating credit policies for the power industry, so as to help better realize the continuous transformation of old and new kinetic energy under the dual carbon goal.

Batik SMEs In East Java Indonesia: Interrelationship Between Personal Value and Management Skills Towards SMEs Performance in The New Normal Era

The development of Batik SMEs in East Java shows a sector that is highly affected by the pandemic due to the unpreparedness of SMEs to face the pandemic conditions. The need for encouragement from the government and strengthening this sector so that it can develop again and make a positive contribution to the regional and national economy. Managerial aspects and personal values owned by Batik SMEs in East Java are expected to be a reinforcing factor for SMEs in facing a very dynamic environment. The purpose of this study was to determine the relationship between personal values and management skills on the performance of Batik SMEs during the new normal era in East Java, Indonesia. The data used were obtained through a survey using a questionnaire, which was then analyzed by factor analysis, descriptive statistics, Pearson product-moment correlation, and multiple regression. The results of the study stated that there was no relationship between personal values and performance, and there was no relationship between management skills and the performance of Batik SMEs in East Java, Indonesia. This research does not include external factors of the research variables, namely government policies that can be measured by inflation rates and tax policies, as well as Bank Indonesia credit interest rates. This study uses the variable management skills, personal values, and performance of Batik SMEs in East Java during the normal era, which are products with local cultural features.

Transmission of Monetary Policy through Credit Interest Rates in Turkey: A Microeconomic Perspective

This study aims to examine the monetary policy transmission through the credit channel from a microeconomic perspective by using the fixed effect dynamic panel model. It is estimated to what extent policy interest rate changes are transferred to the short-term interest rate depending on the type of loan. Results confirm that there is a high degree of inertia in both the commercial and consumer loan interest rates. In terms of the transmission of monetary policy, changes in policy interest rates are transferred to commercial loan interest rates by 11% and consumer loan interest rates by 15% in the short term. These values reveal that policy interest rate changes are gradually transmitted to market interest rates. Variables representing bank size, leverage, and market power in terms of distinctive characteristics have a limited impact on both commercial and consumer loan interest rates in the analyzing period. However, the market share of a bank has a significant impact on both commercial and consumer loan rates.

ANALISIS PENGARUH FAKTOR PRODUK PINJAMAN, PROSEDUR KREDIT DAN SUKU BUNGA KREDIT TERHADAP KEPUASAN ANGGOTA PADA KOPERASI SIMPAN PINJAM SWA MITRA DI DEMAK

Abstract
 Currently the development of cooperatives is quite good. Many cooperatives are established both in the city center and in the regions. The existence of this cooperative is very helpful for its members or prospective members in fulfilling their daily needs. Cooperatives as one of the business entities that carry out activities based on cooperative principles as well as driving the people's economy based on the principle of kinship. The purpose of this study is to determine and analyze the effect of Loan Products, Credit Procedures and Credit Interest Rates on the Satisfaction of Swa Mitra Cooperative Members in Demak.
 The research population is the active members of the cooperative, amounting to 564 and the specified sample is 85 people. The analytical tool used is multiple linear regression with the help of SPSS.
 The results of the study indicate that Loan Products, Credit Procedures and Credit Interest Rates have a positive and significant influence. This is indicated by the positive value of the regression coefficient, t count which is greater than t table and the significant value for loan products, credit procedures and credit interest rates is less than 0.05.
 As a suggestion, one should be careful not to go too far from the interest rate set by Bank Indonesia, considering that interest rates have a major influence on the satisfaction of cooperative members.

Contribution of conventional bank lending for agricultural sector in Indonesia

This study examines the determinant contribution of conventional bank lending for the agricultural sector in Indonesia. The analysis method used in this research is the Vector Correction Model (VECM). The results showed that in the short term, there was no significant effect of the Non-Performing Loan (LogNPL), GDP of Agricultural Sector (LogPDB), and Agricultural Sector Credit Interest Rates (SBK). However, there is an effect of the LogNPL and LogPDB on the conventional bank lending for the agricultural sector in the long term. The LogNPL has a significant positive effect on the contribution of conventional bank lending to the agricultural sector. While the LogPDB has a significant negative effect on the contribution of conventional bank lending for the agricultural sector. The Impulse Response Function (IRF) analysis results show that shocks to the LogNPL respond negatively in the long run, shocks to the LogPDB respond positively in the long run, and shocks to the SBK respond negatively in the long run by conventional bank lending for the agricultural sector. Through the analysis of FEVD (Forecast Error Variance Decomposition), it is known that the biggest contribution to conventional bank lending for the agricultural sector is agricultural credit and GDP.

PENGARUH DANA PIHAK KETIGA, PENYALURAN KREDIT DAN TINGKAT SUKU BUNGA KREDIT TERHADAP PROFITABILITAS PADA LEMBAGA PERKREDITAN DESA (LPD) SE-KECAMATAN ABIANSEMAL TAHUN 2017-2019

Profitability is the ability of a company to generate profits from its capital. This study aims to examine how the effect of third party funds, credit distribution, and credit interest rates on profitability. The sample in this study was 33 LPDs with three years of research observation. The sampling method used is purposive sampling method. The data analysis technique used in this research is descriptive statistics, classical assumption test, multiple linear regression, coefficient of determination, F test, and t test. Based on the results of the simultaneous analysis test, third party funds, lending, and credit interest rates have a significant effect on profitability and partially third party funds and lending have no effect on profitability, while credit interest rates have a positive and significant effect on profitability.

Financing Strategy and Carbon Emission Abatement in a Supply Chain considering Retailers’ Competition

This paper investigates the issues of financing channels (bank credit financing, trade credit financing, and dual-channel financing) and carbon emission abatement in a supply chain consisting of one capital-constrained manufacturer and two capital-constrained retailers. Compared with bank credit, we find that every member can make more profit under trade credit when only one financing channel is available. When both bank credit and trade credit are available, the retailers’ financing strategy highly depends on the interest rates charged by the creditors. In addition, we also examine the impact of financing channels on emission abatement. It shows that the manufacturer reduces more carbon emissions under trade credit. Interestingly, the emission abatement has nothing to do with trade credit interest rate when retailers only adopt trade credit, whereas it is closely related to trade credit interest rate under dual-channel financing.

The Competitiveness Analysis of Corn Farming on Peatland

Agricultural sector, especially the corn commodity, has a very rapid development, especially in Kubu Raya Regency. The product that said to be able to compete the market if it has the ability to be competitive. Products that have high competitiveness were reflected in the price and good quality. But if product was not able to compete, it will bring new problems. Therefore, it was necessary to do some analysis, such as the analysis of the farming profitability and analysis of the competitiveness corn farming in peatland in Kubu Raya Regency. The purpose of this research was to analyze profitability, competitiveness, comparative and competitive advantage of corn farming on peatlands in Kubu Raya Regency. The technique that used was the survey method. The research location was conducted in Sungai Raya and Rasau Jaya Sub-districts. The reason was because it was the area that the largest main center of the corn production in the Kubu Raya Regency. The tool for analyzing used PAM. The result of the research analysis was for financial benefits and economic benefits, corn commodities that developed in peatland areas were feasible both financially and economically. This can be proven in financial terms that obtained by farmers of 15,264,746 Rupiah ha/year and from economic benefits of 9,867,664 Rupiah on 1 hectare/year land. The results of the competitiveness analysis showed that corn farming had comparative and competitive advantages. This can be found from DRCR and PCR values that were less than one. The government, in this case, provided assistance to farmers, in the form of subsidies for fertilizer, subsidized credit interest rates, and also provided positive incentives to farmers. The policy was very helpful for farmers to increase production.

Актуальні аспекти формування системи ризик-менеджменту в банках України

Abstract. Introduction. The article discusses the main directions of organizing a risk management system in Ukrainian banks. In the process of creating effective banking management systems, it is necessary to ensure the optimal infrastructure of risk management. The current risk management mechanism requires improvement, taking into account the achievements of economic science, the real state and prospects of the development of banking, world experience. Purpose. The purpose of the article is to consider the main directions of the organization of the system - risk management of the bank, as well as the identification of the problems of formation and submission of proposals to improve the risk management system in banks of Ukraine. Results. The organizational and functional support of risk management in banks is investigated. It is determined that the banking risk management process should cover all structural levels of the bank - from the top management of the bank to the level at which risk is directly accepted. The main types of banking risks are considered: credit risk, currency risk, liquidity risk, interest rate and market risks. The main problems of the formation of the risk management system that the bank faces in the process of operating activities are identified. Among the current problems of risk management are the following: a low level of participation of bank supervisory boards in risk management, a lack of qualified personnel, an insufficient level of use of quantitative risk assessment methods, which can lead to inadequate assessment by banks of the level of riskiness of their operations; unprotected exchange of information between specialized branches of the bank. The main prospects for the development of risk management in Ukrainian banks are highlighted - this is the search for the optimal organizational structure that would organically include risk management at all stages of banking. Based on the analysis, proposals were made to improve the risk management system in Ukrainian banks: - high qualification of members of the risk management group; clear distribution of responsibilities in the middle of the group; confidence in personal responsibility. Conclusions. The solution of the main problems, among which there is a shortage of qualified personnel, a low corporate culture, a weak level of distribution of powers of collegial bodies and weak risk assessment methods, will make it possible to increase the efficiency of systemic management in banks, including in conditions of economic stability and stability of the banking system in Ukraine.

Research on the Bank Credit Decision Model Based on Comprehensive Risk Assessment

In real life, due to the relatively small scale of SMEs and the lack of mortgage assets, banks usually assess their credit risk based on credit policies, information on transaction notes of enterprises, upstream and downstream influence, and then determine whether to lend or not and credit strategies such as loan lines, interest rates and maturities based on factors such as credit risk. In this paper, a bank credit decision model is established. Considering the influence of three main factors on bank lending, namely, the strength of the enterprise, the stability of the operation of the enterprise and the credit rating of the enterprise, the code is compiled to perform data cleaning, invalid data is eliminated, the enterprise profit is calculated based on the input and output invoices, and then the enterprise is divided into three categories (general income level, middle income level and high income level) and scored through K-Means clustering analysis, and the enterprise strength rating model is established. Then, it combines with the established enterprise stability rating model to determine the size of the credit line, and then establishes an enterprise comprehensive credit rating model to determine the credit interest rate, forming the final credit decision model.

Marketing Strategy Analysis In PT Bankaltimtara Tenggarong

Abstract:
 The purpose of this research is to see the right strategy to be applied at PT. Bankaltimtara Tenggarong based on SWOT analysis. The impact of the global economic crisis, which attacks the banking sector. that some of banks experience enough problems such as customer savings to become unsecured, resulting in public distrust of the bank for their savings guarantee. Another impact is that the amount of funds that can be collected from the public to the bank is decreasing, so that the bank finds it difficult to turn its cash flow, and various other impacts. internal sample of 63 people and external as many as 74 customers. Data that can be analyzed using theoretical basics, namely SWOT analysis to identify the strengths and weaknesses of PT. Bankaltimtara Tenggarong and identify factors of opportunities and threats that come from the external environment. Based on the SWOT analysis conducted, PT Bank Kaltimtara can obtain several marketing strategies, namely: Increasing various types of competitive banking products. a). Increase customer loyalty and expand services to remote villages. b) Increase promotion to be known to remote villages. c) Focus on BUMDes and SMEs targets. d). Implement an attractive savings interest rate strategy and low credit interest rates.
 
 Keyword : Marketing Strategic

THE ROLE OF MARKETING MIX STRATEGIES IN CONSUMER CONVENIENCE OF RURAL BANKS IN NORTH SUMATERA

<p>Rural Banks has the opportunity to increase third party fund in the form of saving and pension credit distribution. Both purposes can be achieved by increasing pensioner customers who make Rural Banks the paymaster of their pension fund. If this problem did not meet the solution or the right handling, it might increase the stagnant customers so that Rural Banks would lose the opportunity to increase third party fund and profit from loan distributed. The purpose of this study was to find out the marketing mix factor that most influence to the customer convenience at the Rural Banks . This is intended to help formulate a marketing strategy to attract customer to become product customer and increase Rural Banks, saving and credit volume. In this study, the method used was survey approach. The type of this study was quantitative descriptive and the nature of this study was descriptive explanatory. Data collection method was carried out using questionnaire and documentation. The data analysis used was multiple regression. Simultaneously, the result showed that the price variable had no effect on the customer convenience to become a customer at the Rural Banks, but the location variable had a strong influence on the decision to become a product customer at the Rural Banks. Product, location, promotion, price, person, and process variables simultaneously had a positive and significant effect on the increase the number of retirees at Rural Banks. This showed that with product offered according to need, location that was easy to reach, attractive promotion, employees who were friendly and working well, a fast process and affordable credit interest rates could boost the positive impact on increasing the number of customers at the Rural Banks, .</p>

Determinants of Credit in Indonesia's Agricultural Sub-Sector: Panel Data Analysis

Credit has a role in agricultural development and the income of small farmers which will reduce poverty levels. However, the portion of credit in the agricultural sector is still relatively small. This study aims to examine determinants of credit in the agricultural sub-sector. The factors include credit rating, credit interest rates, Gross Domestic Product and the number of farmers in the agricultural sub-sector. The data used are secondary data, a combination of cross-sectional data including the agricultural sub-sector, namely food crops, horticultural crops, plantations and livestock and seres times including 2011-2019. The analysis tool used is the regression data panel. The study results show that the number of creditors in the agricultural sector is positive and significant by the number of farmers and Gross Domestic Product, while interest does not affect the credit rating of the agricultural sub-sector. Policies that can be taken are to increase the Gross Domestic Product of the agricultural sector to increase the capacity of farmers. In addition, to increase farmers' access to financial institutions, financial education is needed, so that it will increase financial literacy.

Pengaruh Loan To Deposit Ratio Dan Tingkat Suku Bunga Kredit Terhadap Return On Asset

Bank is a financial institution that serves as a financial intermediary, which means collecting funds from the public and channel them back to the community in the form of loans.
 This research Using data from published financial statements and published from Indonesian banks in the period 2015-2019. Using data from Quarterly. The analysis technique used in this research is multiple linear regression analysis to determine how much the relationship between one variable to another variable. In addition, the test results can be concluded by the multivariate coefficient that LDR has a positive effect and no significant effect on ROA, while lending rates have a significant negative effect on ROA.
 
 Keywords: Return On Assets (ROA), Loan to deposit Ratio (LDR), Credit interest rate level

Cost Of Fund Deposit Impact At The Level Of Interest Credit In The Bank Group In Indonesia

The purpose of this research is that the surplus unit and deficit unit in the banking world are the main activities of its business, in the surplus unit the bank issues a number of expenses (costs) of funds collected in the form of Cost of Fund (COF) where the costs that must be debited by the bank for each fund that has been collected (surplus units) from various sources before deducting the minimum mandatory liquidity charges / costs that must be incurred by the bank. A very meaningful source of funds for banks with the aim of increasing the amount of credit / income that they want to distribute to customers, in this case banks channeling credit really need adequate / available funds. The variables of this study consist of Cost of Funds (COF) deposits and credit interest rates. The final result of this study is that the cost of funds (COF) deposits has a significant effect on loan interest rates.

Credit Transmission, Liquidity, and Bank Capital in Colombia

This document analyses monetary policy effects on transmission of credit interest rates in Colombia with particular attention to the period of global liquidity spurred by the COVID-pandemic during 2020-2022. Challenges for banks operating in Colombia are twofold: they face increasing banking competition (reinforced by FINTECH) and increasing credit risks due to deteriorating macro-financial conditions after a -6.8% real-GDP and an average of 16% in unemployment over 2020. Expected rebound for 2021 looks mild at 4% in real-GDP and staggered unemployment averaging 14%.Credit transmission has been fairly rapid in corporate credits, but slow in consumption loans, given contract prevalence at fix-rates (87% of total) and extensions averaging 6 years in the latter. Gains in credit transmission would require: i) deepening of the swaps market of interest rates, currently focused at OTC instead of the registered market; and ii) increasing the floating portion related to the IBR (bid-market over the central bank repo-window), currently covering only 12% of the portfolio. This would be the Colombian version of the worldwide move from LIBOR into SFAR. However, this deepening of capital markets in Colombia hinge crucially in preserving the “investment grade” status over 2021-2022, currently facing unanimous “negative outlook” from the rating agencies. Finally, compression of financial wedges, increasing credit risks, and higher liquidity-capital requirements (over 2021-2024, under Basle III) represent significant challenges for banks operating in Colombia. Financial Superintendence recently reported Colombia as complying with Basle III, after the transition period of 2016-2019, joining the 42% of LATAM countries in that category.