ABSTRACT
Gross regional domestic product (GRDP) of West Java, Indonesia, still relies on household consumption. One of the factors which encourages the development of household consumption is credit. During the period of 2007-2015, the credit consumer position of commercial banks in West Java increased by approximately 44%. Aside from commercial banks, there is another form of financial institution that took part in lending activities, named shadow banks. This raises the question on whether or not shadow banks disrupt the demand for credit consumer of commercial banks in West Java. This research used multi-variate regression method with ordinary least squares (OLS) technique. The results showed that the level of unemployment and interest rates of banks have a significant negative influence, whereas the interest rate of shadow banks and GRDP of West Java was not significant in affecting the number of the commercial banks’ credit consumption in West Java.
