![]() ![]() For example in the area of Java and Jakarta Regions the highest increase happend, especially in the trade sector, while in Central Sumatra it happend to the agricultural sector and processing industry (Bank Indonesia, 2013). At the regional level, the decline in regional economic growth is followed by a decline in bank lending although on certain loans have increased lending. The liberalization of the economy, bank credit behavior is also influenced by national and international economic conditions. The behavior of banks in lending do not only influenc regional economic conditions alone. Bucher et al., (2013) describes the macroeconomic policy has an important role for financial stability and bank performance improvement. As economic activity increases, requiring additional funding, banks can provide these funds so that the loan portfolio of the bank also increased, nor vice versa. But GDP is an external variable that cannot be controlled by the bank so that macroeconomic policies made by governments determine the performance of the bank. GDP will affect the functioning of bank intermediation. GDP is used to measure the productive activity within a country. GDP (Gross Domestic Product) is the macroeconomic variables that describe the country's economic conditions. But the behavior of banks in lending influenced by economic conditions. Of these functions, the bank will make a profit. The intermediation function of banks is to channel funds collected by the third party bank and then distributed in the form of credit. INTRODUCTION Background The main performance of the bank is increasing the bank's profits from the implementation of bank intermediation function. Keywords: Economic Condition, Lending Behavior and Regional Development BanksĢ I. ![]() This Research found that national economic conditions and inflation at the regional level play an important role in determining the credit behavior of RDB banks. This study?nds evidence for impact of economic conditions at international, national and regional level. 1 Plagiarism Checker X Originality Report Similarity Found: 15% Date: Wednesday, JanuStatistics: 604 words Plagiarized / 4013 Total words Remarks: Low Plagiarism Detected - Your Document needs Optional Improvement Economic Conditions and Lending Behavior Evidence From The Regional Development Banks in Indonesia Rizky Yudaruddin1 1Lecturer at Faculty of Economics and Business Mulawarman University ABSTRACT Using RDB data panels during the period, this study examines whether regional, national and international economic conditions affect lending behavior of RDB in Indonesia. ![]()
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