THE BI RATE AND OUTSIDER FINANCES INFLUENCE BNI'S CREDIT CIRCULATION

Аннотация

Using multiple linear regression analysis, the goal of this study is to look at how third-party funds and the BI Rate affected Bank BNI lending from 2010 to the third quarter of 2016. The study's numbers R square of 98.5 percent indicate that independent variables can explain 98.5 percent of the dependent variable, and that the remaining 98.5 percent can be explained by other variables that were not examined by the independent variables that were used simultaneously and had a significant effect on lending. Third-party funds and a significant positive impact on credit distribution partially mean that when deposits rise, so does the loan portfolio, and vice versa. Nevertheless, the BI Rate has no positive impact on credit. Among the options that could be considered are increasing third-party funds through employee performance enhancement or providing a customer with a gift in order to acquire additional funds: maximizing public lending in accordance with the bank's mission; and employing distributed lag regression models for improved outcomes in subsequent research. KEYWORDS BI; BNI; credit; customer; third-party funds.