Perpustakaan Digital ITB

In this research, writer tries to find the relationship between the amounts of credit in the commercial bank balance sheet with the third party funds, GDP, Inflation, and cash. According to the researcher, the variables that are used in this research can explain the correlation with the credit. Banks can give out credits when the banks itself has the cash/money to give out as loans. The credit that are given by banks to the people are from the third party funds that comes from third party funds of its costumers. This third party fund consists of savings in rupiah and in foreign exchange, time deposits in rupiah and foreign exchange, and demand deposit in rupiah and foreign exchange. When the money that has been the savings is rotated in the banking system, then the money could be given out as loans. The people then uses the credit in order to expand their financial activities, and thus may result in the expansion of the economy as a whole in the means of GDP. And because of this reason, GDP is added as a factor for the variables that is used in this research.