Title: BANK OWNERSHIP, CREDIT ALLOCATION AND BANK CREDIT INTEREST RATES IN INDONESIA
Author: OCTAVIA RENIAR PRINCESS
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
The presence of foreign investors in banking can bring benefits to debtors, namely increased credit supply, especially in foreign currency loans, but they tend to provide credit only to transparent debtors, and ignore debtors such as MSMEs, even though they have an important role for the national economy and need convenience. in credit access. They often get it from banks with government ownership, while the contribution of banks with foreign ownership in this case still needs to be increased. Credit interest rates could also decrease due to increased competition from foreign investors. This research aims to determine the effect of type of bank ownership on MSME credit allocation, foreign currency credit allocation, and bank credit interest rates. This research uses a sample of conventional commercial banks in Indonesia during 2009-2017. Panel data regression results using random effects techniques show that banks with government ownership have higher MSME credit allocations, lower foreign currency credit allocations, and higher credit interest rates than banks with non-government ownership. Banks with foreign ownership have lower MSME credit allocations, higher foreign currency credit allocations, and lower credit interest rates than banks with non-foreign ownership. Banks with foreign ownership through takeover have higher MSME credit allocations, lower foreign currency credit allocations, and higher credit interest rates than banks with foreign ownership through non-takeover.
Keywords: bank ownership, credit allocation, MSMEs, foreign exchange, credit interest rates
Sources: http://repository.unair.ac.id/87802/
