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A Measuring the risk associated with interest rates is important since it is beneficial in taking measures before negative effects can take place in an economy. We obtain a risk measure for interest rates by fitting the generalized Pareto distribution (GPD) to positive extreme day-to-day changes of the interest rate, using data from the Istanbul St...
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... Third, Gross Saving describes the costs borne by banks as bank-specific variables, the price of loans and the cost of funds is an important measure for balancing the interest income (Anjom, 2021), the public and government debt is seen as an indicator of default risk rather than operating to issue other sources of borrowing (Bosworth, 2016), and affects the costs borne by companies and the government, thet imply to influence interest rates policy (Sundarajan, 1985). The last, changes in conditions over-time are useful for observing changes in economic and risk (Özdemir & Schmidbauer, 2014), and strengthening for econometric analysis (Dufour, 1980). This study will examine the IRS in Indonesia using an annual time series data approach from 1990 -2021. ...
This study examines the Interest Rate Spread (IRS) in Indonesia which is influenced by monetary instrument variables, macroeconomic conditions, and event structural changes (Asian Crisis, Global Financial Crisis, COVID-19 and Election year). The analytical method used is the Autoregressive Distributed Lag (ARDL) Model with data observations from 1990 - 2021. The purpose of this study is to determine the strength of the IRS on economic conditions in Indonesia. The results of the analysis show that in the long run, M2, total credit and inflation have a negative effect on the IRS variable, while the household consumption variable has a positive effect. The policy implications need to be applied in efforts to control the IRS are related to monetary policy.
