KONTAMINASI KRISIS GREEN FINANCE TERHADAP AKTIVITAS SEKTOR PERBANKAN INDONESIA

Abstract

The banking sector performance is key to mitigating the negative effects of the green finance crisis. This study examines and detects the contamination of external and internal financial pressures, which resulted in the green finance crisis. Using Bank Indonesia Report data from 2010 – 2025 (time series), with the Ed Waves Index development model using E-Views Version 9. The results found that external pressures (Interest Rates and Exchange Rates) and internal pressures (Deposits and Credit) have the strong potential to cause a green finance crisis, through an increase in Non-Performing Loans, which has an effect on weakening financial stability. Therefore, a balance is needed between the banking intermediary function in managing financial circulation, as part of increasing the effectiveness of green finance distribution in the industrial sector. This aims to achieve an optimal balance in the financial ecosystem and the environmental ecosystem, as an effort to prevent the negative effects of a more acute green finance crisis. Furthermore, strong interconnection is needed between the Central Bank, the banking sector, and the industrial sector for a more optimal integration of financial circulation management, in creating a sustainable balance between the financial and the environmental ecosystem.