Credit Demand Factors on Commercial Banks in Indonesia on The Period 2001 - 2010

Abstract

The research aims to know the factors that affect demand for working capital and investment loan on commercial banks in Indonesia on the period 2001 -2010. The dependent variable in this research is demand of bank credit, and the independent variables are interest rate, inflation, Capital Adequacy Ratio (CAR), and Operational Cost Ratio (OCR).Data used in this research are secondary data obtained from Indonesian Bank on the period 2001 -2010, which used multiple linear regression analysis method. The results shows that CAR has significant affects on credit demand. Interest rate, Inflation, and OCR have no significant affect on credit demand