Abstract
Bank Rakyat Indonesia (BRI) succeeded in loan restructuring in the Micro Small Medium Enterprises (MSMEs) segment. Loan restructuring has succeeded in pushing BRI to achieve the highest financial performance. This study aims to determine the success factors of BRI's loan restructuring. The research object is the Credit Restructuring and Recovery Division. This study applies a qualitative case study. Interviews and documentation were used to collect the data. The findings indicate that the critical success factor in dealing with the crisis is ability to adapt to policies change. The debtor's criteria and loan restructuring cycle are critical success factors of BRI's loan restructuring before the restructuring policy is set. The combination of three main components, namely interest rates, extending loan terms, and payment delays, are a determining factor for the success of loan restructuring. There are five components that support the success of loan restructuring, namely loan marketing, loan guarantee, personal values, information and communication, and other party cooperation.
Highlights
The Coronavirus Disease (Covid-19) pandemic has significantly impacted various sectors, including the banking sector
This finding is in accordance with OJK (2021) that adaptation related to the preparation of adaptive strategies is carried out by implementing supporting policies in stimulating economic growth for Micro Small Medium Enterprises (MSMEs) debtors affected by Covid-19
This study aims to analyze the determinants of the implementation of loan restructuring policies in the context of recovering financial performance by Bank Rakyat Indonesia (BRI) during the Covid19 pandemic
Summary
The Coronavirus Disease (Covid-19) pandemic has significantly impacted various sectors, including the banking sector. The decline of purchasing power, and disruption of economic activity constantly stopped bank lending. These led to a decrease in loan collectability and increased credit risk. These conditions affect the decline in bank financial performance. The regulation aims to prepare anticipatory and further steps to optimize banking performance, maintain financial system stability, and support economic growth. In implementing this regulation, banks apply internal policies to help the debtors
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