This study provides evidence from Indonesia to understand whether Bank Indonesia (BI) could promote economic growth and reducing both unemployment and poverty. Based on model estimation and institutional relationship, there is trade–off between the role of BI in terms of exchange rate stability, price stability and inflation to bank view. It is necessary to add the role of BI on bank view through the authority that obligates banks mandatorily to implement monetary policy in the operational order as credit channel. The addition role of BI in bank view has implications for ability of BI in directing monetary policy comprehensively. With the addition of this role, banks become an integral part of BI in every monetary policies. In addition, the Indonesian government through the Ministry of State–Owned Entreprises has the authority to intervene state–owned banks that dominate banking market nation–wide to be more responsive to macroeconomic and monetary policies.
Keywords: banks view, credit depth, economic growth, monetary transmission