Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)

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The Impact of Efficiency, Profitability, Competition, Regulation, and Crisis Affect to Distribution of Msme Loans in Indonesia

Authors
Isma Sorayah
Corresponding Author
Isma Sorayah
Available Online 27 November 2020.
DOI
10.2991/aebmr.k.201126.062How to use a DOI?
Keywords
Efficiency, Profitability, Competition, Government Regulation, Crisis, MSME Loan
Abstract

Using 60 banks data in Indonesia from 2007-2018, this study aims to analyse the impact of efficiency, profitability, competition, government regulations, and crisis affect to MSME loan distribution in Indonesia. This study using STATA 15 version with time series panel data regression. Stochastic Frontier Analysis (SFA) approach use for calculating average bank efficiency, found that bank efficiency doesn’t influence MSME credit growth, because bank with higher efficiency will be more careful in channelling credit, especially in MSME loans, as well as profitability that has no influence on the growth of MSME loans. Unlike the case with bank competition which has a positive and significant influence on MSME credit growth, this shows that banks in Indonesia are competing each other in distributing MSME loans, in line with regulations imposed by Bank Indonesia on MSMEs in PBI No. 17/12 / PBI / 2015. This study proves that the distribution of MSME loans remain stable even though the economy is experiencing a crisis or recession, the regulation also does not have a significant effect on MSME loans, due to the minimum loan portion in PBI regulation No. 17/12 / PBI / 2015 of 20% which must be distributed by banks has not been fully fulfilled. Macroeconomic control variable GDP also found to have an influence on MSME credit growth.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
27 November 2020
ISBN
978-94-6239-280-9
ISSN
2352-5428
DOI
10.2991/aebmr.k.201126.062How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Isma Sorayah
PY  - 2020
DA  - 2020/11/27
TI  - The Impact of Efficiency, Profitability, Competition, Regulation, and Crisis Affect to Distribution of Msme Loans in Indonesia
BT  - Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
PB  - Atlantis Press
SP  - 560
EP  - 570
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201126.062
DO  - 10.2991/aebmr.k.201126.062
ID  - Sorayah2020
ER  -