The Influence of Demand Deposits and Savings on Third-Party Funds in Indonesian Commercial Banks for the 2020–2021 Period

Abstract

This study aims to analyze the effect of Demand Deposits (Giro) and Savings on Third-Party Funds (Dana Pihak Ketiga/DPK) in Indonesian commercial banks from April 2020 to April 2021. A quantitative method was applied using secondary data from the official publication of the Indonesian Banking Statistics (Statistik Perbankan Indonesia/SPI) by the Financial Services Authority (Otoritas Jasa Keuangan/OJK). Data were analyzed using multiple linear regression with SPSS version 25. The results show that both Demand Deposits and Savings have a positive and significant effect on Third-Party Funds, both partially and simultaneously. The coefficient of determination (R²) of 0.986 indicates that 98.6% of the Third-Party Funds variation is explained by the two variables. The regression model satisfies all classical assumptions, including normality, homoscedasticity, multicollinearity, and autocorrelation. The findings confirm that the growth of low-cost funds from demand and savings deposits plays a crucial role in strengthening bank liquidity and supporting the stability of the national financial system.