The Role of Macroprudential Policy Instruments on Credit Distribution in Indonesia

Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 16 October 2019

The Role of Macroprudential Policy Instruments on Credit Distribution in Indonesia

Muhamad Yunanto, Henny Medyawati

Universitas Gunadarma, Indonesia

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10.31014/aior.1992.02.04.150

Pages: 1057-1063

Keywords: Macroprudential, Property Loans, Loan to Value, Proxyclicality, GDP

Abstract

One of the objectives of the macroprudential policy instrument is to reduce the procyclicality of bank credit growth. This study aims to analyze the Bank Indonesia macroprudential policy in controlling property loans. The research variables consist of independent variables, namely loan to value (LTV) as dummy variables, consumption loan interest rates, GDP and LTV as interaction variables with consumer loans and the dependent variable, namely property loans. The research method uses panel data regression analysis. The data used in this study are secondary data for the period 2009 - 2018. The results show that the fixed effect model is the right model for analyzing whether macroprudential policy instruments (LTV) are able to control property credit.

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