The Influence of Third Party Funds, Non-Performing Loans, Inflation, and BI 7DRR On Lending to Pt. Bank Mandiri (Persero) Tbk for The Period 2014-2022

Abstract

In carrying out its function as a financial intermediary the role of banks is very important in supporting the economy in Indonesia. One of the banks with good credit distribution and increasing every year in Indonesia is PT. Bank Mandiri (Persero), Tbk. In lending, there are several factors that can affect it. The purpose of this study is to analyze the effect of third party funds, non-performing loans, inflation, and the BI 7-day reverse repo rate on credit distribution by Bank Mandiri period 2014 - 2022. The type of research used in this study is the quantitative. This study used the Error Correction Model (ECM) method through the Augmented Dickey Fuller (ADF) test with quarterly time series data during 2014 – 2022 and processed using the Eviews 12 application. The number of observed data was 35 data with secondary data types, taken from banking publication reports on the websites of the Financial Services Authority (OJK), the Central Bureau of Statistics (BPS), and Bank Indonesia. The results of this study indicate that simultaneously in the short term and long term the independent variables namely third party funds, non-performing loans, inflation, and the BI 7-days reverse repo rate have a significantly affect on the dependent variable (credit distribution). Mandiri Bank). Partially, in the long term, the variables of third party funds and non-performing loans have a significant effect on Bank Mandiri’s lending. Meanwhile, inflation and BI 7-days reverse repo rate variables have no significant effect on Bank Mandiri’s lending. Then in the short term the variable third party funds and the BI 7-days reverse repo rate have a significant effect on Bank Mandiri’s lending. Meanwhile, non-performing loans and inflation have no significant effect on Bank Mandiri’s lending.