On Foreign Direct Investment from the ASEAN-8 Countries: A Panel Data Estimation

This paper examines how capital flight, loan interest rates, inflation, exchange rates and economic growth influence foreign direct investment in the ASEAN-8 countries. We apply fixed effect estimation to panel data for data belonging to eight countries from the period 1994 to 2018. The results show that capital flight and economic growth have a positive and significant effect on foreign direct investment. An increase in capital flight, capital retain from sources of funds which greater than the use of funds, has encouraged foreign direct investment to increase. Furthermore, increased economic growth has stimulated foreign direct investment. We find that an increase in loan interest rate (SIBOR), inflation and depreciation of the exchange rate triggers a significant decline in foreign direct investment. This finding implies that capital retention from capital flight and economic growth are the main factors that create an increase in foreign direct investment in the ASEAN-8 countries. Meanwhile, loan interest rates (SIBOR), inflation and depreciation of the exchange rate are the risk factors that investors need to consider when investing in those particular countries. This paper is useful for policy makers in the ASEAN-8 countries to consider these five variables, as the important factors that significantly influence foreign direct investment in the ASEAN-8 countries.

Legal construction of interest rate determination in information technology-based lending services in Indonesia

There is a legal vacuum regarding determining loan interest rates in Article 17 paragraph (1) POJK No. 77/01/2016 concerning Information Technology-Based Lending and Borrowing Services (ITBLBS). With this legal vacuum, O.J.K. has given the authority to AFPI to self-regulate the determination of loan interest rates at ITBLBS. With authority as an S.R.O. ( Self Regulating Organization ) institution owned by the Indonesian Joint Funding Fintech Association (IJFFA). The method used is normative legal research by analyzing primary, secondary, and tertiary legal materials related to the research title. The interest rate in the code of conduct that IFFFA determines as the principle of operation in ITBLBS directly affects the inflation rate. However, Bank Indonesia, as the institution authorized and responsible for targeting inflation in terms of controlling interest rates circulating in the fintech market, is not given any authority based on Article 17 POJK N0. 77 of 2016. This is in contrast to the inflation targeting objective, which is the authority of B.I. It can be concluded that the determination of interest rates in the existing ITBLBS is normatively out of sync between the objectives of the legislation and the objectives of the IJFFA code of conduct.

Transmission of Monetary Policy through Credit Interest Rates in Turkey: A Microeconomic Perspective

This study aims to examine the monetary policy transmission through the credit channel from a microeconomic perspective by using the fixed effect dynamic panel model. It is estimated to what extent policy interest rate changes are transferred to the short-term interest rate depending on the type of loan. Results confirm that there is a high degree of inertia in both the commercial and consumer loan interest rates. In terms of the transmission of monetary policy, changes in policy interest rates are transferred to commercial loan interest rates by 11% and consumer loan interest rates by 15% in the short term. These values reveal that policy interest rate changes are gradually transmitted to market interest rates. Variables representing bank size, leverage, and market power in terms of distinctive characteristics have a limited impact on both commercial and consumer loan interest rates in the analyzing period. However, the market share of a bank has a significant impact on both commercial and consumer loan rates.

A Tripartite Game-Theory-Based Cooperation Mechanism for the Electronic Warehouse Receipt Pledge Financing Mode

To explore the electronic warehouse receipt pledge financing cooperation mechanism in the alliance formed between loan enterprises, commercial banks, e-commerce platforms, and logistics enterprises, by constructing a tripartite evolutionary game model, the game equilibrium strategy is then obtained, and the influencing factors of the cooperation mechanism are further simulated. It was found that in this tripartite evolutionary game, the stable strategy combination occurs when the loan enterprise chooses to repay on time, the platform alliance chooses to provide services, and the commercial bank chooses to continue to cooperate. However, heterogeneity exists in the influencing factors for the three-party selection strategy in the game, which is manifested in the fact that the higher the realization rate of the pledge, the more evolution is required in the selection strategy for loan enterprises to continue cooperating. The higher the information service fee, the higher the enthusiasm of the platform alliance in choosing to provide services. Credit levels, loan interest rates, and pledge realization rates are all important factors that affect the choice strategy of commercial banks.

DETERMINAN KREDIT BANK UMUM UNTUK SEKTOR PERTANIAN: ANALISIS DARI SISI PERMINTAAN DAN PENAWARAN

This study examines Agricultural Loans Determinants: Analysis from the Supply and Demand Side with the scope of Indonesia starting from 2012 to 2019. This study uses Error Correction Model (ECM) analysis as an estimation method that shows the effect of the independent variable on the dependent variable in the short term. as well as long term. The results of the study show that in the short term, the variables of CAR, NPL and Inflation have a negative effect on Commercial Bank Loans for the Agricultural Sector, while the variables of TPF, Economic Activity and Loan Interest Rates have a positive effect. On the other hand, in the long term, the variables of DPK, Economic Activity and Loan Interest Rates actually have a negative effect and it is the variables of CAR, NPL and Inflation that have a positive effect on Commercial Bank Loans for the Agricultural Sector.

Is Economic Uncertainty a Risk Factor in Bank Loan Pricing Decisions? International Evidence

Uncertainty in economic environment leads economic agents to act cautiously. In this paper, we postulate that such uncertainty leads banks to charge higher interest rate on loans. Measuring aggregate country-level economic uncertainty with the World Uncertainty Index (WUI) and using a bank-level dataset from 88 countries over the period 1998–2017, we find that heightened economic uncertainty increases bank loan interest rates. Specifically, bank loan interest rates rise by 20.67 basis points with a one standard deviation increase in WUI. Our results are robust when we use alternative proxy of uncertainty, include additional controls in the model, and extend the sample size. We also observe that WUI index is better at measuring local economic uncertainty as compared to the Economic Policy Uncertainty (EPU) index. Overall, this study provides evidence that bank price in economic uncertainty is an important risk while setting interest rates on bank loans.

The Effects of Macroeconomic Factors on Bank Loan Interest Rates in Turkey Authors

The purpose of the study to reveal how interest rates on loans offered to consumers by banks in Turkey are affected by macroeconomic factors. For this purpose, the personal loan interest rate is considered as the consumer loan interest rate, mortgage loan interest rate and vehicle loan interest rate. Macroeconomic factors, inflation, gold, exchange rate and money supply are included in the analysis. Three models have been established using monthly data for the period January 2009-June 2020. Firstly, cointegration test was applied to the models and it was determined that there is at least one cointegration relationship in each model. Long-term estimation results for the models are obtained by using the FMOLS method. In general, it was observed that the increase in the exchange rate tended to increase the bank loan interest rates, while the increase in the money supply lowered the bank loan interest rates. As a result of the causality analysis, bidirectional causality relationship from consumer loan interest rate to money supply and inflation, unidirectional causality from interest rate to gold price, unidirectional causality relationship from exchange rate to interest rate was determined. Unidirectional causality relationship from mortgage loan interest rate to money supply, unidirectional causality from exchange rate to interest rate was found. While it was determined that there is a bidirectional causality relationship between vehicle loan interest rate and money supply, gold price and inflation. It is expected that these results may guide banks and policymakers to determine interest rate policies.

Perubahan Fluktuatif Struktur Ekonomi Indonesia Pada Masa Pandemi Covid-19

Economic growth in Indonesia has experienced fluctuating changes in 2020, especially entering the Covid-19 pandemic. The subjectivity factor greatly affects Indonesia's economic growth. The important factors that play a role are the low income per person of the population and the large carry-over of the workforce which takes place under pressure from very vulnerable external conditions, which is reflected in the high burden of foreign debt. This is due to being too dependent on imported products which have eroded labor productivity and the empowerment of natural resources has greatly decreased. Economic growth has declined sharply with the spread of the Covid-19 virus which began to enter Indonesia in the second quarter of 2020. The Covid-19 pandemic has greatly affected the movement of the Indonesian economy which tends to decline. This study uses a qualitative method with a descriptive level of explanation, centralized data collection inaccurate social media reports from reliable informant sources, namely the statement of the Minister of Finance Sri Mulyani. The presentation of the research results that in the first quarter (the period from January 2020 to March 2020) economic growth was recorded at a safe rate of plus 2.97%, in the second quarter (April 2020 to June 2020) showed a slump in economic growth, namely minus 5, 32%, there was a significant change, namely a slight increase but still a minus occurred in the third quarter (July 2020 to September 2020) which was minus 1% to minus 2.9%. The negative conditions in the last two quarters resulted in the Indonesian economy falling into a recession. The government must make various important efforts to overcome this recession, namely by deregulating, reducing loan interest rates, increasing interest rates or public savings margins, promoting non-oil and gas exports, expanding job opportunities, restructuring processes due to the still gloomy external situation, increasing taxes, reduction of imported products, handling of the informal sector.

Pengaruh Dana Pihak ketiga Non Performing Loan dan Suku Bunga Kredit terhadap Profitabilitas pada PT. BPR Suryajaya Ubud

This study aims to determine the effect simultaneously or partially on profitability at PT. BPR Suryajaya Ubud for the period 2013-2016. The sample used was 48 DPK, NPL, Loan Interest Rates, and ROA data. Data were analyzed using the classic assumption test, multiple linear regression test, determination analysis, simultaneous significance test (F-test), and partial significance test (t-test). The results in this study indicate that Third Party Funds have partially negative and significant effect on ROA. Non Performing Loans partially have a negative and significant effect on ROA. Credit interest rates partially have a positive and significant effect on ROA. DPK, NPL, and Credit Interest rates simultaneously have a significant effect on ROA at PT. BPR Suryajaya Ubud in 2013-2016.