The Impact of Interest Rates and Inflation Rates on Increasing the Number of Customers Saving
DOI:
https://doi.org/10.55208/cde4bt74Keywords:
Interest Rates, Inflation Against Number of CustomersAbstract
This research investigates the impact of interest rates and inflation on the customer base of PT. Medan Independent Bank in terms of savings. The present study aims to examine the impact of interest rates and inflation on the customer base of Bank Mandiri (Persero) Medan. This study aims to examine the impact of interest rates and inflation on the customer base of Bank Mandiri (Persero) Medan in terms of savings. This study used a causal-comparative research design, which is a type of research that examines the cause-and-effect relationship between two or more variables. This study employs many data analysis approaches, including Validity and Reliability Tests, classical assumption tests, multiple linear regression, hypothesis testing, simultaneous tests, and the Coefficient of Determination (R2). The statistical findings show a significant relationship between the interest rate and the number of customers. This conclusion is based on the t-test (partial), where the calculated t-value of 5.039 exceeds the critical t-value of 2.920, and the significance level of 0.001 is less than the predetermined threshold of 0.05. Therefore, each interest rate significantly impacts the number of customers. Based on the obtained results, inflation substantially influences customer numbers. This conclusion is drawn from the t-test (partial) analysis, where the calculated t-value of 4.051 exceeds the critical t-value of 2.920 at a significance level of 0.001, which is lower than the conventional threshold of 0.05. Hence, individually and independently, inflation significantly impacts the number of customers. Based on the statistical findings, interest rates, and inflation substantially influence customer numbers. This assertion is supported by the F (simultaneous) test, where the F-count value of 18.348 exceeds the critical F-table value of 9.55, and the significance level of 0.000 is less than the predetermined threshold of 0.05. Hence, both interest rates and inflation significantly impact the number of customers concurrently.
References
Andrade, P., Galí, J., Bihan, H. Le, & Matheron, J. (2018). The Optimal Inflation Target and the Natural Rate of Interest. https://doi.org/10.3386/w24328
Aparicio, D., & Bertolotto, M. I. (2020). Forecasting inflation with online prices. International Journal of Forecasting, 36(2), 232–247. https://doi.org/10.1016/j.ijforecast.2019.04.018
Augustin, P., Chernov, M., Schmid, L., & Song, D. (2021). Benchmark interest rates when the government is risky. Journal of Financial Economics, 140(1), 74–100. https://doi.org/10.1016/j.jfineco.2020.10.009
Beutler, T., Bichsel, R., Bruhin, A., & Danton, J. (2020). The impact of interest rate risk on bank lending. Journal of Banking & Finance, 115, 105797. https://doi.org/10.1016/j.jbankfin.2020.105797
Blanchard, O. (2019). Public Debt and Low Interest Rates. American Economic Review, 109(4), 1197–1229. https://doi.org/10.1257/aer.109.4.1197
Delis, M. D., & Kouretas, G. P. (2011). Interest rates and bank risk-taking. Journal of Banking & Finance, 35(4), 840–855. https://doi.org/10.1016/j.jbankfin.2010.09.032
Gimeno, R., & Ibáñez, A. (2018). The eurozone (expected) inflation: An option’s eyes view. Journal of International Money and Finance, 86, 70–92. https://doi.org/10.1016/j.jimonfin.2018.03.018
Hidi, S. E., & Renninger, K. A. (2020). On educating, curiosity, and interest development. Current Opinion in Behavioral Sciences, 35, 99–103. https://doi.org/10.1016/j.cobeha.2020.08.002
I.J., U., J.A., A., D.J., O., & J.I., O. (2021). A Co-integration Approach to the Determinants of Inflation in Nigeria. African Journal of Economics and Sustainable Development, 4(3), 50–60. https://doi.org/10.52589/AJESD-1NDDOCYC
Lacheheb, M., & Sirag, A. (2019). Oil price and inflation in Algeria: A nonlinear ARDL approach. The Quarterly Review of Economics and Finance, 73, 217–222. https://doi.org/10.1016/j.qref.2018.12.003
Lin, W. T., Chen, Y. H., & Jhang, S.-S. (Sherwin). (2023). The effects of unemployment and inflation rates on the business value of information technology and economic performance: The partial adjustment valuation approaches. Asia Pacific Management Review, 28(4), 371–389. https://doi.org/10.1016/j.apmrv.2022.12.005
van Binsbergen, J. H., Diamond, W. F., & Grotteria, M. (2022). Risk-free interest rates. Journal of Financial Economics, 143(1), 1–29. https://doi.org/10.1016/j.jfineco.2021.06.012
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Richna Handriyani, Siti Junaida Hasibuan, Herlin Munthe (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
