scholarly journals The Impact of OJK Regulation No. 48/POJK.03/2020 on the Quality of Credit and Risk Management of Banking Credit

2021 ◽  
Author(s):  
Christanto Arief Wahyudi ◽  
Evi Aryati Arbay
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Secondary Data ◽  
Credit Risk Management ◽  
The Government ◽  
The Stability ◽  
And Control ◽  
The Impact ◽  
Banking Credit

The COVID-19 pandemic, which is spreading rapidly throughout the world, has seriously harmed many countries, including Indonesia. Many things have been detrimental due to COVID-19, one of which is the economic aspect. This pandemic made it difficult for many debtors to fulfil their credit obligations that led the government to issue a countercyclical policy to provide a stimulus to the national economy. This study aims to determine the impact of OJK Regulation No.48 of 2020 on credit quality and control of banking credit risk in Indonesia. The research method used is descriptive qualitative with a literature approach using secondary data. This OJK regulation regulates economic stimulus through credit restructuring and regulates the implementation of credit risk management in banks. The existence of this regulation can maintain the stability of banking performance by keeping the Non-Performing Loan (NPL) number below 5% and providing a reference for banks in risk management with a model that is relevant to economic conditions during the COVID-19 pandemic.

scholarly journals The Impact of OJK Regulation No. 48/POJK.03/2020 the Quality of Credit and Risk Management of Banking Credit

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Christanto Arief Wahyudi ◽  
◽  
Evi Aryati Arbay ◽  
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Secondary Data ◽  
Credit Risk Management ◽  
The Government ◽  
The Stability ◽  
And Control ◽  
The Impact ◽  
Banking Credit

The COVID-19 pandemic, which is spreading rapidly throughout the world, has seriously harmed many countries, including Indonesia. Many things have been detrimental due to COVID-19, one of which is the economic aspect. This pandemic made it difficult for many debtors to fulfil their credit obligations that led the government to issue a countercyclical policy to provide a stimulus to the national economy. This study aims to determine the impact of OJK Regulation No.48 of 2020 on credit quality and control of banking credit risk in Indonesia. The research method used is descriptive qualitative with a literature approach using secondary data. This OJK regulation regulates economic stimulus through credit restructuring and regulates the implementation of credit risk management in banks. The existence of this regulation can maintain the stability of banking performance by keeping the Non-Performing Loan (NPL) number below 5% and providing a reference for banks in risk management with a model that is relevant to economic conditions during the COVID-19 pandemic.

scholarly journals Credit risk management

2018 ◽  
Vol 10 (2) ◽  
pp. 185-205
Author(s):  
Hassan Akram ◽  
Khalil ur Rahman
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Banking Industry ◽  
Negative Impact ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Credit Risk Management ◽  
Content Type ◽  
The Impact ◽  
Better Than

PurposeThis study aims to examine and compare the credit risk management (CRM) scenario of Islamic banks (IBs) and conventional banks (CBs) in Pakistan, keeping in view the phenomenal growth of Islamic banking and its future implications.Design/methodology/approachA sample of five CBs and four IBs was chosen out of the whole banking industry for the study. Secondary data obtained from the banks’ annual financial reports for 13 years, starting from 2004 to 2016, were analyzed. Multiple regression, correlation and descriptive analysis were used in the examination of the data.FindingsThe results show that loan quality (LQ) has a positive and significant impact on CRM for both IBs and CBs. Asset quality (AQ), on the other hand, has a negative impact on CRM in the case of IBs, but has a significantly positive relation with CRM in the case of CBs. The impact of 16 ratios measuring LQ and AQ have also been individually checked on CRM, by making use of a regression model using a dummy variable of financial crises for robust comparison among CBs and IBs. The model proved significant, and CRM performance of IBs was observed to be better than that of CBs. Moreover, the mean average value of financial ratios used as a measuring tool for these variables shows that the CRM performance of IBs operating in Pakistan was better than that of CBs over the period of the study.Practical implicationsThe research findings are expected to facilitate bankers, investors, academics and policy makers to build a better understanding of CRM practices as adopted by CBs and IBs. The findings would be useful in formulating policy measures for the progress of the banking industry in Pakistan.Originality/valueThis research is unique in terms of its approach toward analyzing and comparing CRM performance of CBs and IBs. Such work has not been carried out before in the Pakistani banking industry.

scholarly journals The Impact of Globalisation Towards Bank Performance in Malaysia

2021 ◽  
Vol 12 (1) ◽  
pp. 331
Author(s):  
Logasvathi Murugiah ◽  
Mugeshmani Supramaniam
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Banking System ◽  
Secondary Data ◽  
Macroeconomic Fluctuations ◽  
Bank Performance ◽  
Credit Risk Management ◽  
And Performance ◽  
Macroeconomic Determinants ◽  
The Impact

The purpose of this study is to shed some crucial light on the relationship between globalisation and performance of the banking system in Malaysia. This study uses a range of bank-characteristic determinants (internal factors), macroeconomic determinants (external factors) and three different dimensions of globalisation including economic globalisation, social globalisation and political globalisation to explain local commercial bank performance in Malaysia. This study uses regression analysis based on the secondary data for local commercial banks in Malaysia. The period for this secondary data is 10 years which is from the year 2008 till 2017. This study indicates that there is strong evidence stating both economic and politic globalisation have negatively significant effects on the bank performance in Malaysia. Meanwhile, social globalisation shows an insignificant result on this. As for bank characteristics variables, credit risk shows a negatively significant result towards bank performance in Malaysia while bank size shows a positive and significant result towards bank performance in Malaysia. Sole macroeconomic variable which is GDP does not show any significant result towards the bank performance in Malaysia. Therefore, central bank of Malaysia should give some incentive training for local bankers on how to adopt new supervision and risk management. This will give the local bankers some new knowledge to handle better risk management and directly boost the bank performance. Besides that, banks should develop their credit risk management to overcome any default loans and for better financial performances. Banks in Malaysia also need to expand their businesses as larger banks give a larger facility which directly boots the bank performance. It is also recommended for Malaysian banks to improve their forecasting of macroeconomic fluctuations in future to achieve greater efficiency levels.

Prediction of Return on Equity Using Capital Adequacy Ratio in Commercial Banks: An ANOVA Table Analysis

2014 ◽  
Vol 4 (2) ◽  
Author(s):  
Meenakshi Chaturvedi
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
News Media ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Capital Adequacy ◽  
Credit Risk Management ◽  
Return On Equity ◽  
The Impact

The purpose of this study is to predict the impact of Credit Risk Management on Profitability of Commercial Banks in India. Data is obtained from different news media, publication and sample banks to describe present scenario of banking sector in India. To analyze the profitability and credit risk management of banks after implementing the Basel II standard, we collected secondary data of ten years (2003 to 2013) from the annual report of banks. Few bar-diagrams have been drawn to compare the performance among six banks. While, to fulfill the research objective, ROE, and CAR is calculated to evaluate the Credit Risk of the Banks. Using these two ratios, researcher constructed the regression model statistics.

scholarly journals Impact of Credit Risk Management Systems on the Financial Performance of Commercial Banks in Uganda

2018 ◽  
Vol 66 (6) ◽  
pp. 1627-1635
Author(s):  
Isah Serwadda
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Commercial Banks ◽  
Risk Measures ◽  
Secondary Data ◽  
Credit Risk Management ◽  
Loan Loss ◽  
Loan Loss Provisions ◽  
The Impact

The paper is set to analyse the impact of credit risk management on the financial performance of commercial banks in Uganda for a period of 2006–2015 using panel data for a sample of 20 commercial banks. The study employs return on assets as a dependent variable and non‑performing loans, growth in interest earnings and loan loss provisions to total loans as credit risk measures. Secondary data is sourced from the Bank scope database, African development bank and the central bank of Uganda. The study employs descriptive statistics, regressions and correlation analysis. Regression models are to estimate the magnitude of significance of credit risk management on the performance of commercial banks in Uganda. The study revealed that credit risk management impacts on the performance of Ugandan commercial banks. The results portrayed that banks’ performance was inversely influenced by non‑performing loans which may expose them to large magnitudes of illiquidity and financial crisis. Thus given such results, the researcher recommends that banks need to enhance their credit risk management techniques not only to earn more profits but also to maintain a qualitative asset portfolio and attention be given to non‑performing loans, loan loss provision to total loans and growth in interest earnings that were found to be significant. Banks need to design appropriate credit policies that must handle all necessary conditions before advancing credit to their customers and also develop strong credit administration committees and teams that must conduct appropriate and sound loan appraisal evaluations and which must also monitor the loans throughout the required processes right from extending a loan to a customer up to the completion of loan repayments so as to mitigate credit risks.

scholarly journals ANALYSIS OF EXISTING APPROACHES ABOUT MANAGEMENT AND MINIMIZATION OF CREDIT RISK

2019 ◽  
pp. 53-63
Author(s):  
S. Pokhylko ◽  
V. Novikov
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Banking System ◽  
Credit Risk Management ◽  
State Of The Economy ◽  
The Government ◽  
Bank Solvency ◽  
Definition Of ◽  
Credit Portfolio ◽  
Banking Credit

The efficiency of banking performance, related to ensuring reliable protection for banks from credit risk by borrowers, requires resolving multiple issues related to the analysis of their creditworthiness and reliability, as well as development of methods and models to predict the consequences of non-repayment or overdue loans from the borrowers‘ side for the further effective functioning of a bank. Taking into account a considerable amount of scientific works devoted to the research of influence of credit risk on banking there is still a necessity in improvement of existing methods of credit risk management. The article is devoted to the research of the influence of credit risk on banking in Ukraine, in regard to the analysis of the domestic and foreign approaches and methods of determining banking credit risk; quality of its management and minimization, analysis of the legislation on the definition of exposure to borrower's credit risk; analytical reviews of indicators of the banking system, in particular, research of the banking credit portfolio structure for revealing the reasons of change of particular indicators. And, consequently, their influence on the financial sustainability and bank solvency. The research pays attention to intermediary organizations as participants of contractual relations between banks and borrowers. The authors give their own vision of the efficiency of measures taken by the government to stabilize banking and assess the introduced models of banking credit risk management from a scientific perspective . The analysis of the indicators showed a growing share of non-performing loans, in particular, the number of overdue assets in the credit portfolio of banks. Which would be caused by the declining production and a decrease in the level of solvency of the population against the background of general political and economic instability in the country. The study identified the lack of effectiveness of the existing legislation related to credit policy and the work with non-performing loans, which would have contributed to the protection of the banking system from the existing credit risk and corresponded to realities of the modern state of the economy. Key words: banking, overdue assets, overdue loans, credit, credit risk, credit portfolio.

scholarly journals Pengaruh Credit Risk Management Pada Financial Performance Bank Konvensional Yang Terdaftar di BEI

2021 ◽  
Vol 26 (3) ◽  
pp. 447
Author(s):  
Ervina, Vivi N. Fatimah, H.S.Lestari
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Performance ◽  
Secondary Data ◽  
Sampling Technique ◽  
Capital Adequacy ◽  
Credit Risk Management ◽  
Capital Adequacy Ratio ◽  
Conventional Banks ◽  
The Impact

The purpose of this study is to analyze the impact of credit risk management on the financial performance of Indonesian conventional banks in 2016-2020. The sample in this study was 32 conventional banks from 160 observations using purposive sampling technique and secondary data. The dependent variable in this paper is measured by profitability using the return on assets proxy while credit risk management as an independent variable. From the research results, LDR and NPLR have no effect on financial performance. CAR has a positive influence on financial performance so that bank managers are expected to be able to maintain their capital adequacy ratio in accordance with the provisions set by Bank Indonesia to maintain their financial performance because a high capital adequacy ratio is considered safe and tends to meet its financial obligations, while CIR and LDR negative effect on financial performance. By increasing the ratio of costs to income indicates a low level of efficiency in banking operational costs, and low liquid assets will increase cash reserves to reduce liquidity risk. Investors can invest their funds in banks that have a high capital adequacy ratio, cost of income ratio and liquidity ratio to avoid financial risk.

scholarly journals Credit Management and Issues of Bad Debts: An Empirical Study of Listed Deposit Banks in Nigeria

2020 ◽  
pp. 32-49
Author(s):  
Peter E. Ayunku ◽  
Akwarandu Uzochukwu
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Commercial Banks ◽  
Random Effect ◽  
Credit Risk Management ◽  
Loan Loss ◽  
Data Set ◽  
Credit Management ◽  
Loan Loss Provision ◽  
The Impact

This study examines the impact of credit management on firm performance amidst bad debts, among Nigerian deposit banks. Five hypotheses were formulated following the dependent variables of Return on Asset and Tobin Q. The independent variables employed for this study include: Loan Loss Provision, Loan to Deposit Ratio, Equity to Asset Ratio, and Loan Write off. This study is based on ex-post facto research design and employed a panel data set collected from fourteen (14) commercial banks over six years ranging from 2014 to 2019 financial year. We analyzed the data set using descriptive statistics, correlation and Ordinary Least Square Regression Technique. The random effect models established that non-performing loan, loan loss provision and equity to asset impact significantly on banks’ performance in both Return on Asset and Tobin-Q models. This suggests that the sampled banks need to establish efficient arrangements to deal with credit risk management. In all, credit risk management indicators considered in this research are important variables in explaining the profitability of Nigerian commercial banks. However, based on the outcome from the empirical analysis, the study carefully recommends that investors and shareholders in these banks should be aware of the possible use of provisions for losses on non-performing loans by managers for smoothening of profits. The shareholders specifically should be ready to meet optimal agency costs to reduce the manager's information asymmetry by hiring competent internal and external auditors.

scholarly journals Dampak Perkembangan Pariwisata Terhadap Kondisi Sosial Ekonomi Masyarakat Di Pulau Nusa Lembongan

2018 ◽  
Vol 6 (1) ◽  
pp. 177
Author(s):  
Budi Shantika ◽  
I Gusti Agung Oka Mahagangga
Keyword(s):  
Local Community ◽  
Secondary Data ◽  
Sampling Technique ◽  
Primary Data ◽  
Community Ownership ◽  
Data Source ◽  
The Government ◽  
Tourism Service ◽  
And Control ◽  
The Impact

This research was conducted based on the condition of the development of tourism on the island of Nusa Lembongan, aiming to find out the impact brought about by socio-economic conditions against the tourism society.This study uses qualitative and quantitative approach with mix method, the primary data source that are obtained by observations and direct interviews and secondary data. The sampling technique used was purposive sampling techniques and data analysis using the method of case study. This study shows tourism provides impact on society and the government on the island of Nusa Lembongan are seen from eight aspect among others : impact increasing of foreign exchange, impact toward local community income that increasing before tourism exist, impact toward higher prices than the real prices, impact toward employment for opportunity to local community, ownership and control of tourism accommodation, the distribution of benefits and advantage against indigenous village, development in general are seen from 4A tourism and government income of tax viewed from PHR. Advice can be given to government and businessman and tourism service on the island of Nusa Lembongan in the order of future improve the facilities, infrastructure supporting tourism, reinforce the rules on the division of the proceeds against the indigenous villages, improving access and employment for local community on the island of Nusa Lembongan.   Key Words              : Tourism, Nusa Lembongan Island, Impact

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