Cyclicality of bank credit growth: Conventional vs Islamic banks in the GCC

This study aims at defining the credit growth determinants in Lebanon by exploiting a panel data of 34 commercial banks over the period 2000-2015. The empirical results show that deposit growth, GDP growth, inflation, and money supply, all boost bank credit to the resident private sector. Conversely, credit risk, lending interest rate, T-bill rate, public borrowing, and remittance inflows decrease loan growth. We extend our analysis and detect the impact of one year lag of all exploited variables in order to find out if they have a delayed impact on credit growth, where we find several different results. For instance, lag LLP recorded the opposite effect of LLP; ROA does not affect credit growth, whereas its lag lowers credit growth; the impact of a change in money supply amplifies considerably after one year; and finally, the negative impact of remittances fades away after one year.

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Determinan Suku Bunga dan Likuiditas Bank Terhadap Pertumbuhan Kredit di Indonesia

Jurnal Ecogen ◽

10.24036/jmpe.v3i2.8762 ◽

2020 ◽

Vol 3 (2) ◽

pp. 200

Author(s):

Yeniwati Yeniwati

Keyword(s):

Interest Rate ◽

Interest Rates ◽

Commercial Banks ◽

Secondary Data ◽

Least Square ◽

Bank Credit ◽

Credit Growth ◽

Ordinary Least Square ◽

Banking Community ◽

The Interest Rate

This study aims to determine the effect of the interest rate (BI rate) on bank credit growth in Indonesia, liquidity on bank credit growth in Indonesia and determine the effect of interest rates and liquidity on bank credit growth in Indonesia. The method used in this study is Ordinary Least Square (OLS) using secondary data from 2009 Quarter I to 2018 Quarter IV. The results of the analysis showed that there was an influence between interest rates on bank credit growth in Indonesia, there was an influence between liquidity on bank credit growth in Indonesia. Together there is an influence between interest rates and bank liquidity on the growth of bank credit in Indonesia. The policy implication of this research is that Bank Indonesia must maintain the benchmark interest rate set in order to trigger an increase in bank credit growth. In addition, Bank Indonesia must monitor the liquidity of commercial banks in Indonesia so that the trust of the banking community is even greaterKeywords : interest rate, Liquidity, Credit

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PERAN DANA PIHAK KETIGA DALAM MEMEDIASI PENGARUH NET INTEREST MARGIN TERHADAP PERTUMBUHAN KREDIT PADA PERBANKAN YANG GO PUBLIC DI BURSA EFEK INDONESIA

Jurnal Ekonomi dan Bisnis ◽

10.30659/ekobis.21.1.51-57 ◽

2020 ◽

Vol 21 (1) ◽

pp. 51

Author(s):

Pristin Prima Sari ◽

Ardian Prima Putra

Keyword(s):

Interest Rates ◽

Stock Exchange ◽

Bank Lending ◽

Third Party ◽

Bank Credit ◽

Process Data ◽

Credit Growth ◽

Net Interest Margin ◽

The Government ◽

Interest Margin

AbstractsThe study found empirical proof the role of third party funds (DPK) mediate the influence of net interest margin (NIM) on bank credit growth listed in Indonesia Stock Exchange on 2015-2018. The study uses data from the bank�s annual financial statements. The Study covers 22 commercial banks resulting in 88 bank-year observations. Research using Smartpls 3.0 statistical tools to process data and path analysis to compute data. The results obtained are third party funds (DPK) that can positively mediate the influence of net interest margin (NIM) on credit growth. The greater DPK create the profitability of bank interest rates increases bank credit growth. Partially Net interest margin (NIM) and third party funds (DPK) can increase bank credit growth. Net interest margin (NIM) also can increase the amount of third party funds (DPK). This study is useful for bank management to make decisions on determining bank margins, obtaining third party funds (DPK) and credit, for the government for study and mapping materials related to bank lending and the amount of bank interest rates, for further research is for reference material related to factors affecting lending.Keywords : Net Interest Margin, Third Party Fund, Credit, IDX

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Deflation, bank credit growth, and non-performing loans: Evidence from Japan

International Review of Financial Analysis ◽

10.1016/j.irfa.2016.04.003 ◽

2016 ◽

Vol 45 ◽

pp. 295-305 ◽

Cited By ~ 34

Author(s):

Chaiporn Vithessonthi

Keyword(s):

Bank Credit ◽

Credit Growth

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THE DIRECTION ANALYSIS OF CAUSALITY BETWEEN ECONOMIC AND BANK CREDIT GROWTH IN SOUTH AFRICA

Journal of Business and Strategic Management ◽

10.47941/jbsm.31 ◽

2016 ◽

Vol 1 (2) ◽

pp. 42

Author(s):

Dr. Goodman Chakanyuka

Keyword(s):

Economic Growth ◽

South Africa ◽

Business Cycles ◽

Granger Causality ◽

Granger Causality Test ◽

Bank Credit ◽

Causality Test ◽

Credit Growth ◽

Study Results ◽

The Relationship

Purpose: The purpose of this study was to Analyze of the Relationship between Business Cycles and Bank Credit Extension: Evidence from South Africa. The study sought establish the direction of causality between economic growth and bank credit growth in South AfricaMethodology: The econometric methodology is used to augment results of the survey study. Granger causality test technique is applied to the variables of interest to test for direction of causation between variables. The study uses quarterly data for the period of 1980: Q1 to 2013: Q4. Business cycles are determined and measured by Gross Domestic Product at market prices while bank-granted credit is proxied by credit extension to the private sector.Results: Results revealed that, that there is a stable long-run relationship between macro-economic business cycles and real credit growth in South Africa. The results show that economic growth significantly causes and stimulates bank credit. The Granger causality test provides evidence of unidirectional causal relationship with direction from economic growth to credit extension for South Africa. The study results indicate that the case for demand-following hypothesis is stronger than supply-leading hypothesis in South Africa. Economic growth spurs credit market development in South Africa.Unique contribution to theory, practice and policy: It proposes practical policy prescriptions to address challenges currently facing South Africa. The other major contribution of this study is that it shall open new avenues for further research on finding causality of the relationship between various proxies of economic growth and financial development adopting the VAR framework

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