Abstract

Economic growth is influenced by various factors, including support from the banking world in channeling funds owned through bank credit which will be a stimulus from economic activities as a source of economic growth. Purpose: This study aims to analyze the determinants of bank lending in supporting regional economic growth in South Sulawesi Province. Research Design, Data, and Methodology: This study uses secondary data taken from banking data and analyzed using path analysis Data analysis is carried out using the help of SPSS statistical analysis tools. Results: Non- Performance Loan, Three Partied Fund, Inflation, Exchange Rate directly affect economic growth. For the analysis of the indirect effect of Non-performance loans and Three Partied Funds have an indirect effect on economic growth through lending while the Loan to deposit Ratio, Inflation and exchange rate do not indirectly affect economic growth through lending. Credit disbursement has a positive and significant effect on economic growth Conclusion: Economic growth of a region is influenced by many factors and these factors are influences from the banking world, the results of this study show that economic growth is strongly influenced by bank support through lending to support the economy by considering other factors such as interest rates and currency exchange rates