BANK CREDIT IN FINANCIAL CYCLE IN INDONESIA

Abstract

This study aims to determine the relationship of bank credit to the wave of the financial cycle in Indonesia, This study uses secondary data from Bank Indonesia, Otoritas Jasa Keuangan and Badan Pusat Statistik from 1990 to 2020, the data is processed using the Simultaneous Equation Model and Eview 9, and this research using Ed Waves Index method as a new method to measurement of financial cycle as a novelty of this research. The results of this study found that the movement of the financial cycle was not affected by the amount of bank credit, changes in banking credit pressure -0.47 to 0.43 Amplitude affects the wave of financial cycles in Indonesia.