The Impact Of Monetary Policy On Indonesian Bank Loans

This article discusse monetary policy's impact on bank borrowing. The data selected are Indonesian state data and the annual research period for 13 years from 2008 - 2020 with secondary data from the world bank. This study investigates wide money as a percentage of Gdp, Interest payment percent of expense, Domestic credit to private sector by banks percent of GDP. This study uses a quantitative method with an autoregressive vector model with the results of data processing showing that there is no reciprocal or two-way relationship between the three variables. This study found that monetary policy's impact can have macroeconomic action by increasing or limiting the supply of bank loans. This is evidenced by the different magnitudes of growth in lending in various sectors reflecting the growing effects of monetary policy.