IDEAS home Printed from https://ideas.repec.org/a/idn/journl/v9y2006i2bp21-55.html
   My bibliography  Save this article

Perilaku Penawaran Kredit Bank di Indonesia: Kasus Pasar Oligopoli Periode Januari 2001 – Juli 2005

Author

Listed:
  • Chaikal Nur Yakin

    (FEUI)

  • Perry Warjiyo

    (Bank Indonesia)

Abstract

This paper uses a microeconomic approach to analyze the bank lending behavior in Indonesia during 2001:1 – 2005:7. The loan supply function is derived from the structural loan supply and demand equation in a Cournot-Oligopoly market. We treat the loan supply function as a structural error component of the model, and apply to data of the 15 biggest banks in Indonesia. The proposed hypothesis; the bank engages in the profit maximization, cannot be rejected. This bank behavior is in conjunction with the bank’s interdependency. However, due to the internal inefficiency of the bank, the profit maximization behavior does not reflect the ideal condition of the banking intermediation function, not in the loan volume nor in the lending rate. Moreover, the bank’s lending behavior responds positively with the loan rate, responds negatively on the interest liability (time deposits interest) and respond negatively on the investment alternative (the SBI). In addition, the SBI rate as a monetary policy instrument is not effective to loan interest rate to guide the banks in choosing between these two portfolio investments.

Suggested Citation

  • Chaikal Nur Yakin & Perry Warjiyo, 2006. "Perilaku Penawaran Kredit Bank di Indonesia: Kasus Pasar Oligopoli Periode Januari 2001 – Juli 2005," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 9(2), pages 21-55, October.
  • Handle: RePEc:idn:journl:v:9:y:2006:i:2b:p:21-55
    DOI: https://doi.org/10.21098/bemp.v9i2.205
    as

    Download full text from publisher

    File URL: https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=1420&context=bmeb
    Download Restriction: no

    File URL: https://libkey.io/https://doi.org/10.21098/bemp.v9i2.205?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Loan; Cournot; interest rate; bank; pool analysis;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:journl:v:9:y:2006:i:2b:p:21-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.