Credit Crunch Detection in Indonesia
Author (s):Angel Evangelist Foni Sopo Ninu, Lukman Hakim, Siti Aisyah Tri Rahayu
Institution: Sebelas Maret University, Indonesia
Category: Article, IJMMU, Economic, Inflation, Indusrty
Topics: Credit Crunch; Two Stage Least Square; Covid-19 Pandemic
Abstract: This research analyzes the credit crunch phenomenon in Indonesia using the Simultaneity method. The data taken is time series data on the demand and supply side of credit. The research results show that the credit crunch phenomenon occurs from the demand and supply sides. The factors of credit demand are Credit Interest Rate (CIR) and Inflation. Meanwhile, from the supply side, namely Credit Interest Rate (CIR), Third Parties Fund (TPF), Net Interest Margin (NIM), and Non-Performing Loans (NPL). The results of research using the Two Stage Least Square approach show that, simultaneously, the variables inflation, CIR, NPL, NIM, TPF have an influence on the demand and supply of credit which triggers a credit crunch during the Covid-19 pandemic.
Article can be downloaded >>Credit Crunch Detection in Indonesia
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