IMPLICATIONS OF SBI INTEREST RATES ON BANKING INDUSTRY IN INDONESIA

Ibrahim, ida musdafia and Madiistriyatno, Harries (2011) IMPLICATIONS OF SBI INTEREST RATES ON BANKING INDUSTRY IN INDONESIA. THE 12  MALAYSIA­INDONESIA INTERNATIONAL CONFERENCE ON   ECONOMICS, MANAGEMENT, AND ACCOUNTING 2011  TH MIICEMA  Borderless Economy: Opportunities and Challenges for Businesses in Southeast Asia”. ISSN 978­979­9431­68­4

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Abstract

This research aims to evaluate the impact of the interest rates of Certificates of Bank Indonesia (SBI) on banking interest rates and its implication to Raising and Distribution of Funds On Banking Industry that go public in ISX. The object of this research are commercial banks that go public in the ISX. The research periods are 1999 to 2008 by using financial statement data. Research method The conclusion are, first, the interest rates of Certificates of Bank Indonesia (SBI) have positive and significant impact to the average interest rates of commercial banks, both the interest rate of third-party funds and the interest rate of borrowing. Second, SBI interest rate that influence on the third party funding interest rate, has negative and significant impact on the volume of Third Party Funds. Third, Both the volume of Third Party Funds and the interest rate of borrowing for commercial banks have impact on borrowing volume. Using simple regression, the volume of third-party funds has positively and significantly impact to the borrowing volume, while the borrowing rate has impact significantly and negatively to the borrowing volume. Using multiple regression, simultaneously, third-party funding volumes and lending interest rates of commercial banks have positive and significant impact on the borrowing volume. Partially, the third party funding volume have positive and significant impact to the borrowing volume, while the borrowing rate of commercial banks have low impact and positive to borrowing volume. The implication of this study are the changes on SBI interest rate will affect the third party funding volume of commercial banks. But the raising of the the third party funding volume do not followed by the raising of distribution of funds (borrowing volume). It means that the intermediaries function of commercial banks are not fully succeed. Keywords: SBI Interest Rates, The Interest Rate of Third Party Funds,The Interest Rate of borrowing, The volume of Third Party Funds, The Volume of borrowing.

Item Type: Article
Subjects: H Social Sciences > HG Finance
H Social Sciences > HJ Public Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Management
Depositing User: SE.,MM Ida Musdafia Ibrahim
Date Deposited: 09 Nov 2020 10:21
Last Modified: 09 Nov 2020 10:21
URI: http://repository.stie-yai.ac.id/id/eprint/208

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