The impact of monetary policy and credit risk on bank credit behavior: An analysis of banks listed on the Indonesian stock exchange

The study investigates macroeconomic and bank-specific determinants of credit for commercial banks from 2010Q1–2022.Q4 in Indonesia. banking is divided into an investment, working capital, consumption credits. aims to address a gap the literature since most prior studies are concentrated on developed markets. A system generalized method moment (GMM) estimator employed investigate impact central bank rates risk credit. Dynamic-GMM estimations find that rate has negative three types Meanwhile, non-performing loans positively investment capital credits but negatively affect interaction between impacts affects This provides managers policymakers with timely information regarding drivers, encouraging management take necessary measures, may consider importance conditions while creating lending policy. Similarly, it informs potential investors how evaluate data when choosing better option.