The Impact of Financial Inclusion on Financial Stability in Indonesia

Wulan Pudji Lestari, Doni Putra Utama

2021

Abstract

The financial system has a strategic role in an economy. In the last 22 years, Indonesia has experienced two economic crises. This event reminds of the importance of maintaining financial system stability. The data used in this study is quarterly data for the period 2008-2019 from Indonesia Financial System Statistics and Financial Stability Review of Bank Indonesia as well as the Annual Report of the Deposit Insurance Corporation. Data analysis method used a t-test and f-test. The result of this investigation showed that financial inclusion that was proxied using the number of savings accounts and the number of bank service offices had no influence on financial stability. Meanwhile, financial inclusion that is proxied using the number of ATMs, third-party funds-to-GDP ratio and SMEs credit account ratio to bank credit accounts has a positive and significant effect on financial stability. This research also shows that financial inclusion jointly has a positive and significant effect on financial stability. Based on this research, the government is expected to create a policy that attracts the public to use financial services that are fully available.

Paper Citation

in Harvard Style

Pudji Lestari W. and Putra Utama D. (2021). The Impact of Financial Inclusion on Financial Stability in Indonesia. In Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS, ISBN 978-989-758-605-7, pages 40-47. DOI: 10.5220/0010894600003255

in Bibtex Style

@conference{icaess21,
author={Wulan Pudji Lestari and Doni Putra Utama},
title={The Impact of Financial Inclusion on Financial Stability in Indonesia},
booktitle={Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,},
year={2021},
pages={40-47},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010894600003255},
isbn={978-989-758-605-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 3rd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,
TI - The Impact of Financial Inclusion on Financial Stability in Indonesia
SN - 978-989-758-605-7
AU - Pudji Lestari W.
AU - Putra Utama D.
PY - 2021
SP - 40
EP - 47
DO - 10.5220/0010894600003255