September 12, 2025Open Access

Macroeconomic Volatility and Bank Lending Behavior: An ARDL Approach Using Indonesian Time-Series Data

View Full Paper

Ask AI

Bookmark

Authors

Discussion

Observational analysis reveals how macroeconomic volatility affects bank lending behavior in Indonesia, indicating the need for stability.

Macroeconomic volatility negatively impacts bank lending decisions, particularly through inflation and exchange rate fluctuations.
Inflation volatility and exchange rate fluctuations significantly hinder credit growth in both the short and long run.
GDP growth has a positive effect on total bank credit, enhancing lending opportunities in a stable economic environment.
Interest rate volatility has a weaker, yet notable impact on bank lending in the short run, suggesting complexity in lending dynamics.

Lestari et al. (2025) studied this question.

View Full Paper

Ask AI

Bookmark

Observational analysis reveals how macroeconomic volatility affects bank lending behavior in Indonesia, indicating the need for stability.