The Impact of Macroprudential Policies on MSME Credit Growth and Risk
DOI:
https://doi.org/10.31933/dijemss.v5i3.2375Keywords:
Conventional Banks, Credit Risk, Loan Growth, Macroprudential Policy, MSMEAbstract
The aim of this research is to identify the impact of macroprudential policy related to the financing ratio for micro small medium enterprises (MSME) to each bank’s MSME credit growth and non-performing loan (NPL). This research used a panel data analysis using the pooled least square (PLS) model conducted on the financial data of 40 public conventional banks for the observation during the period from 2012 to 2021 with MSME’s credit growth and NPL as the dependant variables and the policy, bank’s characteristics, and macroeconomic factors as independent variables. The results reveals that the policy significantly affects MSME’s credit growth and NPL. This study ultimately provides input for banks to fulfill the financing ratio in order to comply with the regulator but should be selective in terms of MSME’s financing. The findings of this research inquire regulator to re-evaluate the requirement target for all banks to achieve minimum financing MSME ratio.
References
Altunbas, Y., Binici, M., & Gambacorta, L. (2018). Macroprudential policy and bank risk. Journal of International Money and Finance, 81, 203–220.
Andrie?, A. M., Melnic, F., & Sprincean, N. (2022). The effects of macroprudential policies on credit growth. The European Journal of Finance, 28(10), 964–996.
ANISA, A., & SUTRISNO, S. (2020). Capital buffer and determinant factors of conventional banks in Indonesia. The Journal of Asian Finance, Economics and Business (JAFEB), 7(12), 377–384.
Aslamah, A.N. & Pratama, A. (2022). Pengaruh Instrumen Kebijakan Makroprudensial Terhadap Pertumbuhan Kredit Bank Umum di Indonesia. Jurnal Pendidikan Ekonomi, Perkantoran dan Akuntansi, 2302-2663.
Bappenas. (2020). Kajian Kebijakan Penanggulangan Dampak Covid-19 terhadap UMKM – Survei Kebutuhan Pemulihan Usaha Bagi UMKM Indonesia.
Beck, T., & Demirguc-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931–2943.
Behncke, S. (2023). Effects of macroprudential policies on bank lending and credit risks. Journal of Financial Services Research, 63(2), 175–199.
?ehaji?, A., & Košak, M. (2021). Tightening and Loosening of Macroprudential Policy, Its Effects on Credit Growth and Implications for the COVID-19 Crisis. Economic and Business Review, 23(4), 207–233.
?ehaji?, A., & Košak, M. (2022). Bank lending and small and medium-sized enterprises’ access to finance–Effects of macroprudential policies. Journal of International Money and Finance, 124, 102612.
Claessens, S., Ghosh, S. R., & Mihet, R. (2013). Macro-prudential policies to mitigate financial system vulnerabilities. Journal of International Money and Finance, 39, 153–185.
Fakhrunnas, F., Nugrohowati, R. N. I., Haron, R., & Anto, M. B. H. (2022). The determinants of non-performing loans in the indonesian banking industry: an asymmetric approach before and during the pandemic crisis. SAGE Open, 12(2), 21582440221102420.
Foos, D., Norden, L., & Weber, M. (2010). Loan growth and riskiness of banks. Journal of Banking & Finance, 34(12), 2929–2940.
Gaganis, C., Hasan, I., & Pasiouras, F. (2013). Efficiency and stock returns: evidence from the insurance industry. Journal of Productivity Analysis, 40, 429–442.
Gómez, E., Murcia, A., Lizarazo, A., & Mendoza, J. C. (2020). Evaluating the impact of macroprudential policies on credit growth in Colombia. Journal of Financial Intermediation, 42, 100843.
Haryati, S. (2009). Pertumbuhan kredit perbankan di Indonesia: Intermediasi dan pengaruh variabel makro ekonomi. Jurnal Keuangan Dan Perbankan, 13(2), 299–310.
Kim, H., & Bachman, J. R. (2019). Examining customer perceptions of restaurant restroom cleanliness and their impact on satisfaction and intent to return. Journal of Foodservice Business Research, 22(2), 191–208. https://doi.org/10.1080/15378020.2019.1596002
Meuleman, E., & Vander Vennet, R. (2020). Macroprudential policy and bank systemic risk. Journal of Financial Stability, 47, 100724.
Pasaribu, F. M. B. (2021). Pengaruh Kualitas Produk, Harga, Dan Brand Image Terhadap Minat Beli Produk Pada Emina. STIE YKPN.
Tarigan, Z. N. A. B., Dewi, F. N., & Pribadi, Y. (2022). Keberlangsungan Usaha Mikro, Kecil, Dan Menengah Di Masa Pandemi: Dukungan Kebijakan Pemerintah. Jurnal BPPK: Badan Pendidikan Dan Pelatihan Keuangan, 15(1), 12–23.
Wardhani, I. D. (2012). Analisis Risiko Pembiayaan Kredit Korporasi Bank Asing di Indonesia (Studi Kasus Bank ABC).
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Ferry Fredrick Kaban, Dewi Hanggraeni
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Dinasti International Journal of Education Management and Social Science (DIJEMSS) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Education Management and Social Science (DIJEMSS).
