Implikasi Bank Capital Buffer Terhadap Prosiklikalitas Kredit Perbankan di Indonesia

Abstract

Purpose: The aim of this study was to analyze the bank capital buffers effect’s and other macroeconomics variables on the procyclicality of credit in the banking sector in Indonesia. This study also aims to determine how was the movement of bank credit in Indonesia and to find out whether there is procyclicality of bank credit in Indonesia.

Methodology/approach: To identify the influence of excessive credit, this research used regression with panel data on some banking sample consisting of 10 banks that include in the DSIBs (Domestic Systematically Important Banks) group. The variables that were tested in this research are bank capital buffer, real Gross Domestic Product and BI Rate on credit.

Results/findings: The results of this study indicate that during the research period there was procyclicality of bank credit in Indonesia. It also shows that the bank's capital buffer and GDP have a significant effect on credit, while the BI rate has no effect on credit.