The Effect of Macroeconomic and Bank-Specific Financial Dynamics on Credit Growth of Commercial Banks in Indonesia
Keywords:
Bank size, CAR, Credit Growth, Inflation, Interest rate, NPL
Abstract
This study aimed to analyze the effect of macroeconomic and internal banking factors on credit growth in commercial banks in Indonesia during the 2015–2024 period. The variables included inflation, interest rates, Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL), and bank size. This study used secondary data obtained from the World Bank, Bank Focus, and Refinitiv Eikon with a sample of 20 commercial banks and 172 observations. The analysis method employed panel data regression using the Common Effect Model (CEM). The results showed that inflation had a positive and significant effect on credit growth. Interest rates, CAR, and NPL had negative and significant effects on credit growth, while bank size had a negative but insignificant effect. Simultaneously, all independent variables significantly affected credit growth in commercial banks in Indonesia. The findings indicated that credit growth was influenced by macroeconomic conditions and internal banking conditions, particularly credit risk and capital adequacy.
References
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Ozili, P. K. (2025). Bank non-performing loans research around the world. Asian Journal of Economics and Banking, 9(3), 437–462. https://doi.org/10.1108/ajeb-09-2024-0103
Pasaribu, P., & Mindosa, B. (2021). the Bank Specific Determinants of Loan Growth and Stability: Evidence From Indonesia. Journal of Indonesian Economy and Business, 36(2), 93–123. https://doi.org/10.22146/jieb.v36i2.1385
Salmita, D., Khazaleh, S. Al, Syamsu, N., & Rifai, R. . (2025). Credit Growth in Indonesia: Comparison Between Government Banks and Private Banks Through the Chow Test. Iqtishodia: Jurnal Ekonomi Syariah, 10(1), 14–23. https://doi.org/https://doi.org/10.35897/iqtishodia.v10i1.1547
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Anwar, C. J., Didu, S., Suhendra, I., Ichwanudin, W., & Nupus, H. (2025). Monetary Policy , Macroprudential Policy , and Credit Cycle : Evidence in the Indonesian Banking Industry. International Journal of Economics and Financial Issues, 15(6), 299–305. https://doi.org/https://doi.org/10.32479/ijefi.21269
Anwar, C. J., Suhendra, I., Didu, S., Sayektiyani, A., & Kholishoh, L. N. (2023). The impact of monetary policy and credit risk on bank credit behavior: An analysis of banks listed on the Indonesian stock exchange. Cogent Economics and Finance, 11(1). https://doi.org/10.1080/23322039.2023.2220250
Aulia, U., Junaidi, H., Setiawan, D. I., PS., D. K., Meidatuzzahra, D., Nirmala, I. R., Nadjib, H. R., Sari, M. P., Syilfi, Rakanita, Y., Astuti, N. H., & Larasati, R. D. (2024). Statistik Parametrik (Teori dan Aplikasi dengan SPSS) (A. Hairil (ed.)). CV. Media Sains Indonesia.
Aziz, A., & Maulida, S. (2024). Bank Credit Growth in Indonesia During the Covid-19 Pandemic and Its Regulations. Journal of Central Banking Law and Institutions, 3(1), 177–202. https://doi.org/10.21098/jcli.v3i1.47
Boukhatem, J., & Djelassi, M. (2022). The bank-lending channel of monetary policy transmission in a dual banking system: empirical evidence from panel VAR modeling. Cogent Economics and Finance, 10(1). https://doi.org/10.1080/23322039.2022.2107765
Cendani, M. A., & Puspitasari, I. F. (2025). Effectiveness of Macroprudential Policy on Banking Credit Growth in Indonesia (2015-2023). Journal of Economics Research and Social Sciences, 9(2), 184–202. https://doi.org/10.18196/jerss.v9i2.26548
Firmansyah, M., & Mu’ammal, I. (2023). Efektivitas transmisi kebijakan moneter jalur kredit dan harga aset terhadap pertumbuhan ekonomi pada bank sentral di ASEAN-5. Entrepreneurship Bisnis Manajemen Akuntansi (E-BISMA), 4(2), 378–396. https://doi.org/10.37631/ebisma.v4i2.1206
Greenbaum, S. I., & Thakor, A. V. (2007). Contemporary Financial Intermediation. In Elsevier Inc. (2nd ed.). Elsevier.
Harianja, A. H., Habeahan, J. A., Tobing, K. A. B., Sihombing, J., Siregar, T. I., Siallagan, H., & Hasugian, C. (2024). Pengaruh Ukuran Bank, Efisiensi, Dana Pihak Ketiga, Dan LDR terhadap Penyaluran Kredit pada PT Bank Danamon Indonesia, Tbk Periode 2013- 2022. Jurnal Ilmiah Wahana Pendidikan, 10(21), 21–27. https://doi.org/https://doi.org/10.5281/zenodo.14271524
Hor, B., & Lim, S. (2025). The Impact of Non-Performing Loans on Credit Growth of Commercial Banks in Cambodia. Journal of Risk and Financial Management, 18(11). https://doi.org/10.3390/jrfm18110635
Huljak, I., Martin, R., Moccero, D., & Pancaro, C. (2022). Do non-performing loans matter for bank lending and the business cycle in euro area countries? Journal of Applied Economics, 25(1), 1050–1080. https://doi.org/10.1080/15140326.2022.2094668
Isnurhadi, I., Adam, M., Sulastri, S., Andriana, I., & Muizzuddin, M. (2021). Bank Capital, Efficiency and Risk: Evidence from Islamic Banks. Journal of Asian Finance, Economics and Business, 8(1), 841–850. https://doi.org/10.13106/jafeb.2021.vol8.no1.841
Kismawadi, E. R. (2025). Islamic Banking and Economic Growth: A Panel Data Approach. Iranian Economic Review, 29(3), 934–981. https://doi.org/10.22059/ier.2023.365739.1007815
Kurnia, S. R., & Aldi, A. (2023). Studi Keputusan Investasi Dan Kinerja Perusahaan Dalam Kondisi Inflasi Dan Pergerakan Kurs Pada PT.Perusahaan Gas Negara Tbk. Jurnal E-Bis : Ekonomi-Bisnis, 7(1), 291–304. https://doi.org/https://doi.org/10.37339/e-bis.v7i1.1107
Lestari, H. S., Usman, B., Laksono, W. S., & Abdullah, M. H. (2025). The Influence of Macroeconomic Indicators and Bank Internal Factors on Credit Risk in Developing Countries. Jurnal Ilmiah Manajemen Kesatuan, 13(3), 1399–1410. https://doi.org/10.37641/jimkes.v13i3.3178
Loissa, A. F., & Krisnanda, G. H. (2023). Determinants of Credit Growth in Commercial Banks in Indonesia. Journal of Tourism Economics and Policy, 3(4), 282–295. https://doi.org/10.38142/jtep.v3i4.881
Mankiw, N. G. (2016). Macroeconomics (9th ed.). Worth Publishers.
Mishkin, F. S. (2016). The Economics of Money, Banking, and Financial Markets (11th ed.). Pearson.
Napitupulu, R. B., Simanjuntak, T. P., Hutabarat, L., Damanik, H., Harianja, H., Sirait, R. T. M., & Tobing, C. E. R. L. (2021). Penelitian Bisnis: Teknik dan Analisis Data dengan SPSS-STATA-EVIEWS (1st ed.). Madenatera.
Nguyen, Y., & Nguyen, L. (2022). Funding liquidity, bank capital, and lending growth in a developing country. Cogent Economics and Finance, 10(1). https://doi.org/10.1080/23322039.2022.2122958
Ozili, P. K. (2025). Bank non-performing loans research around the world. Asian Journal of Economics and Banking, 9(3), 437–462. https://doi.org/10.1108/ajeb-09-2024-0103
Pasaribu, P., & Mindosa, B. (2021). the Bank Specific Determinants of Loan Growth and Stability: Evidence From Indonesia. Journal of Indonesian Economy and Business, 36(2), 93–123. https://doi.org/10.22146/jieb.v36i2.1385
Salmita, D., Khazaleh, S. Al, Syamsu, N., & Rifai, R. . (2025). Credit Growth in Indonesia: Comparison Between Government Banks and Private Banks Through the Chow Test. Iqtishodia: Jurnal Ekonomi Syariah, 10(1), 14–23. https://doi.org/https://doi.org/10.35897/iqtishodia.v10i1.1547
Sari, L., Nurfazira, N., & Septiano, R. (2021). Pengaruh Non Performing Loan, Suku Bunga Kredit, Dan Modal Bank Terhadap Penyaluran Kredit Pada Perusahaan Perbankan Lq 45. Jurnal Ekonomi Manajemen Sistem Informasi, 2(6), 702–713. https://doi.org/10.31933/jemsi.v2i6.611
Published
2026-06-21
How to Cite
Dhia, M. R., Isni Andriana, Kemas Muhammad Husni Thamrin, & Taufik. (2026). The Effect of Macroeconomic and Bank-Specific Financial Dynamics on Credit Growth of Commercial Banks in Indonesia. International Journal of Economics, Business and Innovation Research, 5(04), 1987-2004. https://doi.org/10.63922/ijebir.v5i04.4478
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