Determinants the Distribution of Bank Lending Interest Rates in Indonesia

Abstract

This study aims to identify and analyze the determinants of the distribution of  bank credit spread   in Indonesia and are followed by corporate governance variables, such as ownership structure, board structure, deviation, information environment and credit risk . This research used a descriptive quantitative. In this study, the population used 46 banks that listed on the Indonesia Stock Exchange. The selected sample using a purposive sampling method and as many as 37 banks listed on the Indonesia Stock Exchange consistently publish financial reports in 2017 - 2021. .Data collection carried out by using secondary data in the form of bank annual reports and data panel financial reports from year 2017 - 2021. The results of this study indicate that the ownership structure has an insignificant positive effect on the spread of credit interest rates or credit spread at banks in Indonesia in the 2017 – 2021 timeframe, the board structure has an insignificant positive effect on the distribution of credit interest rates or credit spread in banks in Indonesia, Deviation has a significant negative effect on the spread of credit interest rates or credit spread on banks in Indonesia, Information environment has an insignificant negative effect on the spread of credit interest rates or credit spread on banks in Indonesia and the last shows that, Credit risk has an insignificant positive effect on the spread of credit interest rates or credit spreads at banks in Indonesia.