Analysis banking role to performance improvement on Indonesia small medium enterprises

Abstract

This study aims to analyze the role of banks to increase small and medium enterprises and economic growth in Yogyakarta province, Indonesia. The focus of this study examines how the role of banks in terms of lending to small and medium enterprises, credit to the private sector and its impact on economic growth in Yogyakarta Province. The data used in this research is secondary data obtained from the Central Bureau of Statistics. Data processing tools using EViews 8.0 program. The results of this study indicate that bank credit to small and medium enterprises, the number of small and medium enterprises, the output value of small and medium businesses significant positive effect on economic growth. While credit to the private sector significant negative effect on economic growth. Statistically, the model used in this study deserves to explain economic growth in Yogyakarta province.