Loan Deposits Ratio of Indonesia Bank: Speed Adjustment?

Abstract

This paper aims to explore determinant of Loan Deposit Ratio and including to examined speed adjustment.  This paper will use model panel data and research period of 2010 t0 2019.  This research found that Loan to Deposits ratio lag one, Net Interest Margin, Non-Performing Loan, Capital Adequacy Ratio, Risk Adjusted Return on Capital, Risk and Market Power as internal factor significant affect Loan to Deposits Ratio.  Cement consumption and Fed Rate significant affect Loan to Deposits Ratio.  The bank could adjust the LDR around 9.99 months to get back equilibrium.

Keywords: We Loan Deposits Ratio, Net Interest Margin, Non-Performing Loan, Market Power, Speed Adjustment