September 12, 2025Open Access

Macroeconomic Volatility and Bank Lending Behavior: An ARDL Approach Using Indonesian Time-Series Data

View Full Paper

Ask AI

Bookmark

Authors

Discussion

Analysis using the ARDL approach shows inflation and exchange rate fluctuations negatively affect bank lending.

Inflation volatility significantly reduces bank lending in both short and long run, indicating financial instability.
Exchange rate fluctuations result in negative impacts on lending behavior, alongside GDP growth positively influencing credit expansion.
Interest rate volatility shows weaker but significant short-run effects on lending, highlighting the need for stability.
The findings emphasize the importance of macroeconomic stability for fostering credit growth and economic development.

Lestari et al. (2025) studied this question.

View Full Paper

Ask AI

Bookmark