Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)

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Determinants of Financial Deepening in Indonesia: Analyzing the Impact of Banking and Macroeconomic Factors

Authors
Ikbal Lutfi1, *
1Economics Doctoral Program Student, Postgraduate Faculty of Economics and Business, Hasanuddin University, Makassar, Indonesia
*Corresponding author. Email: ikbal3006@gmail.com
Corresponding Author
Ikbal Lutfi
Available Online 30 July 2025.
DOI
10.2991/978-94-6463-758-8_244How to use a DOI?
Keywords
Financial Deepening; Indonesia; Banking Sector; Macroeconomic Factors
Abstract

Financial deepening plays a vital role in economic development, yet its determinants in Indonesia remain understudied. This research aims to analyze the impact of banking and macroeconomic factors on financial deepening in Indonesia. The data used in this research is quarterly data from 2019 to 2023 to examine the effect of the number of bank offices, number of deposit accounts, inflation, and interest rates (BI rate) on financial deepening. Our results indicate that the number of deposit account and inflation have significant effect on financial deepening where that the number of deposit account has no direct effect in the context of this model and inflation has negative effect on financial deepening. Meanwhile, the effects of the number of bank office and BI rate are not statistically significant, indicating that changes in these areas may not substantially affect financial deepening. These findings have significant implications for policymakers and financial institutions in fostering financial sector development in Indonesia.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
30 July 2025
ISBN
978-94-6463-758-8
ISSN
2352-5428
DOI
10.2991/978-94-6463-758-8_244How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Ikbal Lutfi
PY  - 2025
DA  - 2025/07/30
TI  - Determinants of Financial Deepening in Indonesia: Analyzing the Impact of Banking and Macroeconomic Factors
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 2965
EP  - 2978
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_244
DO  - 10.2991/978-94-6463-758-8_244
ID  - Lutfi2025
ER  -