Analysis of The Impact of Bi-7 Days Reverse Repo Rate and Money Supply Movement on The Total Third Party Funds in Indonesian Banking Before and After The Pandemic (Covid-19)

Abstract

This research aims to analyze the influence of the BI-7 Days Repo Rate (BI7DRR) and the amount of money supply on Third Party Funds (DPK) on banking in Indonesia during the 2019-2023 period. The research method used is quantitative, and it processes primary data from the Financial Services Authority (OJK), Central Bank (BI), and Central Statistics Agency (BPS). The data analysis technique used is time series analysis, by carrying out stationarity tests, and regression with the Autoregressive Distributed Lag (ARDL) model to see the relationship between variables in the long term and the Error Correction Model (ECM) for the short term. The research results show that all variables have a short-term and long-term relationship and reflect a significant influence between BI7DRR and the money supply on the number of deposits in Indonesia. The test also shows a positive relationship related to the increase in Third Party Funds which is in line with the growth of BI7DRR and the amount of money supply.