Research Paper
Year: 2020 | Month: August | Volume: 7 | Issue: 8 | Pages: 250-256
Analysis of the Effect of Interest Rates and Income per Capita on Consumption Credit at Government Commercial Banks in North Sumatra
Rahmad Khadafi1, Samad Zaino2, Amarsyah Ali Hasibuan3, Taufik Akbar4, Christianity Winner Baene5
1,2,3,4,5Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia
Corresponding Author: Rahmad Khadafi
ABSTRACT
This research titled is analysis of the effect of interest rates and income per capita on consumption credit at Government Commercial Banks in North Sumatra. This research uses annual data during 1992 until 2006 which employ econometric model and using statistical analyze tools, named ordinary least of square (OLS). The purpose of this research is to know how big the effect of interest rates and income per capita on consumption credit at Government Commercial Banks in North Sumatra. The variable used are interest rates, income per capita, and consumption credit. The result from estimation of two variables shows that variables significant to consumption credit at Government Commercial Banks in North Sumatra. Determinan cooficient value equal to 0.90 describe that independent variable together give an effect to dependent variable equal 90% and 10% describe by other variable which not include in to the model or caused by disturbance error.
Keywords: Interest Rates, Income per Capita, Consumption Credit
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