The role of banking activities in the development of domestic savings in Indonesia for the period 2005-2018

Abstract

The development of banking activity by virtue of technological development, and it has taken new horizons towards a joint contribution to building societies and the economy, and that the development of banking activities would stimulate an increase in local savings, and their employment in order to serve the overall economy. The importance of research is that increasing the effectiveness of local savings would increase efficiency of banking activities, thus supporting the local economy and economic growth. The hypothesis of the research stated that the dominance of the governmental character, and the modest role of the private sector in banking activity, contribute to the limited level of local savings, and then the overall economic loss of this channel in financing productive activities.