Universal Journal of Accounting and Finance Vol. 9(4), pp. 531 - 541
DOI: 10.13189/ujaf.2021.090401
Reprint (PDF) (408Kb)


Interest Rates and Inflation as Determining Factors of Saving in Central Sulawesi Banks


Andi Herman Jaya , Tasrina Sari Tolla , Ahmad Syatir , Anwar Nasruddin , Novita Sari , Haerul Anam *
Department of Economics & Development Studies, Faculty of Economics Tadulako University, Indonesia

ABSTRACT

This study aims to analyze the effect of the Central Bank, which is in Indonesia presented by Bank Indonesia (BI) Rate and inflation rate on the savings rate at commercial banks in Central Sulawesi by using the analysis tools of autoregressive conditional heteroscedasticity (ARCH) and generalized autoregressive conditional heteroscedasticity (GARCH). The results of the analysis show that the BI Rate and inflation have significant effects on saving rate at commercial banks in Central Sulawesi. The importance of being a source of investment funds to support development activities can be a consideration for the government to formulate a policy for allocating investment from these savings funds for productive sectors. Practically, it is hoped that the distribution of savings through investment activities can encourage economic growth and increase economic development in Central Sulawesi.

KEYWORDS
BI Rate, Inflation, Savings, ARCH, GARCH

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Andi Herman Jaya , Tasrina Sari Tolla , Ahmad Syatir , Anwar Nasruddin , Novita Sari , Haerul Anam , "Interest Rates and Inflation as Determining Factors of Saving in Central Sulawesi Banks," Universal Journal of Accounting and Finance, Vol. 9, No. 4, pp. 531 - 541, 2021. DOI: 10.13189/ujaf.2021.090401.

(b). APA Format:
Andi Herman Jaya , Tasrina Sari Tolla , Ahmad Syatir , Anwar Nasruddin , Novita Sari , Haerul Anam (2021). Interest Rates and Inflation as Determining Factors of Saving in Central Sulawesi Banks. Universal Journal of Accounting and Finance, 9(4), 531 - 541. DOI: 10.13189/ujaf.2021.090401.