The Role of Government Stimulus in Moderating Bank Resilience During the Crisis: A Study of MSME Loan and Credit Risk Management in Commercial Banks in Indonesia During the Covid-19 Pandemic

This study focused on assessing the role of internal audit in credit risk management in commercial banks in Kosovo. Methodology: The methodology used was quantitative, involving data collection through a structured questionnaire for internal auditors and bank loan analysts in Kosovo. The survey aimed to gather information about their practices, adherence to Institute of Internal Auditors standards, and the organization’s credit risk management structure and responsibilities. The Chi-Square test was applied to test the hypotheses. Study Findings: Internal audit affects the reduction in credit risk and the definition of existing credit policies. Also, a positive relationship was found between bank size and the approach used in auditing, and the organisation of credit policies and credit risk management in commercial banks in Kosovo. Originality: Through this scientific paper we can present real and consistent results regarding the role of internal audit in credit risk management in commercial banks in Kosovo. Extracting data from the questionnaire and adhering to international standards on auditing leaves room to draw competent conclusions and recommendations in this area.

This study aims to determine the influence of the Capital Adequacy Ratio (CAR) and Loan Deposit Ratio (LDR), both partially and simultaneously, on Non Performing Loans (NPL) in Conventional Commercial Banks in Indonesia for the period 2016-2020. This research is associative research with a quantitative approach. The data used in this study is secondary data, data analysis techniques using a data regression panel. Testing panel data include CEM, FEM and REM, Chow Test, Hausman Test, Lagrange Multiplier Test. Classic assumption tests include The Test of Normality, Heteroskedastisitas, Multicollinearity and Autocorrelation. Data analysis using correlation and determination coefficient analysis, Simultaneous and Partial Hypothesis Test. The population in this study was 99 Conventional Commercial Banks in Indonesia and a sample of 25 Conventional Commercial Banks in Indonesia with purposive sampling techniques. Based on the results of simultaneous hypothesis testing where CAR and LDR jointly have a significant effect on NPL Conventional Commercial Banks in Indonesia, the results off count 6.89 > 3.42 f table with a significant rate of 0.001457 lower than the α 0.05. While the partial hypothesis testing where CAR affects NPL Conventional Commercial Banks in Indonesia seen the results of t count -3,507 < 2,068 t table with a signifies value of CAR of 0.0006 is smaller than α 0.05. LDR has no effect on NPL of Conventional Commercial Banks with the calculation result of -1,116 < 2,068 t table with a significant LDR value of 0.2665 greater than α 0.05.

This study aims to investigate the impact of COVID-19 on the increase in bad credits at conventional commercial banks in Indonesia. The data used in this study are secondary data sourced from the Ministry of Health and from the Financial Services Authority (OJK), each of which consists of 50 data samples. The data analysis technique used in this study is simple regression analysis to determine the magnitude of the influence of COVID-19 on non-performing loans. The results of the data analysis show that COVID-19 has a significant effect on non-performing loans, and the COVID-19 variable can be used as an external indicator of the increase in non-performing loans for commercial banks in Indonesia. The implication of the research is that other researchers can make COVID-19 an external indicator of an emergency beyond human ability that can affect the level of non-performing loans. For banking, this study can be used as a reference when considering credit risk management policy during the COVID-19 pandemic. AcknowledgmentThe researchers are grateful to University of Sultan Ageng Tirtayasa for financial support. In addition, the authors sincerely apologize for the errors and mistakes found in this paper.

Interest rate channel monetary policy is dominant in Indonesia because interest rates act as an instrument in the banking sector that regulates the quantity of money in society and can respond directly to changes in monetary policy.Interest rate channel monetary policy can be used to control fluctuating non-performing loans. The aim of this research is to analyze the influence of interest rate channel monetary policy in the long term and short term on non-performing loans (NPL) of conventional commercial banks in Indonesia. This research uses the Error Correction Model (ECM) analysis tool. The research results show that the reference interest rate (BI Rate) has a significant short-term effect on non-performing loans. Deposit interest rates (rDEPO) and interbank money market interest rates (rPUAB) have a long-term influence on non-performing loans. Credit interest rates (rKRDT) have a significant long-term and short-term effect on non-performing loans. Meanwhile, the Bank Indonesia Certificate (rSBI) interest rate does not have a significant long-term or short-term effect on non-performing loans of conventional commercial banks in Indonesia.

This study to analyze the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loan (NPL), and Operational Costs Operating Income (BOPO) on Return on Assets (ROA) in conventional commercial banks in Indonesia during the period 2018-2022. CAR is measured based on the bank's capital adequacy ratio, LDR reflects liquidity, NPL indicates credit risk, and BOPO represents operational efficiency. The data used is quantitative data obtained from financial statements published on the official websites of the Indonesia Stock Exchange (IDX) and the Financial Services Authority (OJK). The research sample is selected using a purposive sampling method based on specific criteria. Multiple linear regression analysis is used to test the direct influence of the independent variables on ROA. The results show that CAR and LDR have no significant effect on ROA, while NPL and BOPO have a significant effect on ROA. The implication of this research is that conventional commercial banks in Indonesia need to focus on credit risk management and operational efficiency to enhance profitability.

Credit risk is the risk that occurs when customers fail to fulfill their obligations to the bank, both principal and interest. (Risna Eka Peratiwi, 2018 )The non-performing loan policy is a step taken by a bank to overcome credit risks arising from bad or uncollectible loans. Financial stability is an important indicator in determining the financial soundness and continuity of a bank's operations. The purpose of this research is to examine and find out the influence of non-performing credit policy arrangements on financial stability, identify the factors that can influence non-performing credit policy arrangements on financial stability, and analyze how the strategy of the Financial Services Authority (OJK) increases the effectiveness of non-performing credit policies on financial stability in Commercial Banks in Indonesia. The results of this study indicate that non-performing credit arrangements have a significant influence on financial stability in conventional commercial banks in Indonesia, by implementing effective non-performing credit policies, banks can reduce the risk of non-performing loans, strengthen financial position and at the same time increase overall financial stability. . Several factors that are significant in setting non-performing loan policies include the quality of the bank's financial condition, the quality of a bank's risk management, and the development of the banking industry. As well as the research results show that OJK implements several strategies in its efforts to increase the effectiveness of a non-performing loan policy regulation. by implementing an effective non-performing credit policy, banks can reduce the risk of non-performing loans, strengthen their financial position and at the same time increase overall financial stability. Several factors that are significant in setting non-performing loan policies include the quality of the bank's financial condition, the quality of a bank's risk management, and the development of the banking industry. As well as the research results show that OJK implements several strategies in its efforts to increase the effectiveness of a non-performing loan policy regulation. by implementing an effective non-performing credit policy, banks can reduce the risk of non-performing loans, strengthen their financial position and at the same time increase overall financial stability. Several factors that are significant in setting non-performing loan policies include the quality of the bank's financial condition, the quality of a bank's risk management, and the development of the banking industry. As well as the research results show that OJK implements several strategies in its efforts to increase the effectiveness of a non-performing loan policy regulation. the quality of a bank's risk management, and the development of the banking industry. As well as the research results show that OJK implements several strategies in its efforts to increase the effectiveness of a non-performing loan policy regulation. the quality of a bank's risk management, and the development of the banking industry. As well as the research results show that OJK implements several strategies in its efforts to increase the effectiveness of a non-performing loan policy regulation.

The paper outlines different trends and transitions in the history of credit risk management of Chinese commercial banks. By critically reviewing different stages of credit management and its historical evolution, it helps in understanding the nature of subjective challenges faced by Chinese commercial banks to manage credit risks. It reviews post reform policies in particularly after 1978 to locate the policy transitions and trajectories of credit risk management of commercial banks in China. It helps to understand the problems and prospects of effective credit management of risks by Chinese commercial banks. It argues that Chinese commercial banks are facing greater challenges in managing risk after the entry of foreign banks to China. Therefore, it is important for the commercial banks in China to develop its own credit management mechanisms within the context of Chinese banking environment.

The number of commercial banks in Indonesia after the 2008 global crisis declined. The decrease in this number was caused by mergers, consolidations, acquisitions, integrations and conversions in the context of forming a resilient national banking industry structure. To ensure a stable banking sector, these banks must be evaluated through a Risk-based Bank Rating. When the 2008 global crisis economic shock and the COVID-19 pandemic occurred, the banking intermediary function was disrupted. In these conditions, the financial performance of banks also experienced a decline. This study aimed to assess the bank rating and resilience of banks in 2008-2020, forecast the bank rating and resilience of banks in Indonesia in 2021-2030 and analyze the effect of bank rating on bank resilience. This study used secondary data, that is a annual financial reports published by the Financial Services Authority. The data was analysed by ARIMA and panel data regression. The results showed that the bank rating and resilience of commercial banks declined during the economic shocks of the 2008 global crisis and the 2020 Covid pandemic. It is predicted that the resilience of commercial banks will increase in 2021-2030. Earnings as measured by ROA had a positive effect on bank resilience. Credit risk (NPL) had a negative effect on resilience, while liquidity risk (LDR) showed a positive effect on the resilience of commercial banks in Indonesia. GCG and Capital had no effect on bank resilience

Commercial banks are concerned with the provision of credit facilities in form of loans and advances to customers. These loans and advances are expected to be repaid by customers in line with the agreement reached with their bankers. Customers’ default in the repayment of loans and advances at the agreed period may lead to bad and doubtful debts and this can affect the financial health, profitability and going concern status of the bank. This study empirically explored the effect of credit risk management on the financial performance of nine listed commercial banks in Kenya for the period, 2018-2022. Credit risk management as the independent variable, was surrogated by two parameters- loans to deposit ratio and Non-performing Loans ratio. Return on Assets was used as a proxy for financial performance of the listed commercial banks in Kenya. The study utilized the information asymmetry theory and the theory of moral hazard and adverse selection. A correlational research design, using secondary data derived from listed commercial banks’ annual audited reports and information from Nairobi Securities Exchange was used in this study. The target population of the study was the nine listed commercial banks in Kenya. A pilot study was carried by performing the normality and multi-collinearity tests from the sample data collected for purposes of assessing the reliability and validity of the model. A census method was adopted in data collection since the target population was manageable. Collected data was analyzed using the Statistical Package for Social Sciences Version 28 where both descriptive and inferential statistical methods were used to describe and depict the results (Mean, Standard Deviation, Correlation, Regression and Analysis of variances). The findings of the study revealed a statistically significant regression effect and indicative of accomplished prediction of financial performance of the listed commercial banks through the F-calculated value which showed that the model was significant. Loan to deposit ratio explained .4% (r =.280) of financial performance of listed commercial banks in Kenya and non-performing loans ratio -36.5% (r=-.681) of financial performance of the listed commercial banks in Kenya. The study will be expected to add to the existing literature in the finance field and more importantly, the credit risk management in commercial banks and other related sectors. The study recommended that; management balance the ratio of financing between equity, debt and customer deposits to extend lending capacity, and generate high earnings volume; desist from holding capital without investing for improved financial achievement; management should maintain a moderate level of Loans and advances to deposit ratio since it is a measure of the banks’ ability to survive withdrawals, because higher rates lead to liquidity problems; give credit-risk management prominence in their strategic policies and finally, due to the continuous deterioration and accumulation of the nonperforming loans, management ought to strengthen loan recovery measures. Keywords: Credit Risk Management, Financial Performance, Listed Banks, Equity Multiplier Ratio, Capital Adequacy Ratio, Nonperforming Loans

Credit risk management is crucial and it is instrumental in ensuring the success or failure of any credit institution. The main concern of the banks is credit risk and its management as credit or loans and advances are the main source of income for them. This study therefore aims to examine the impact of credit risk management of banks in Nepal. Secondary data was gathered from commercial banks of Nepal for ten year periods This study used multiple regression analysis. The finding shows that all the sample banks have managed loans as well as the nonperforming loans. The correlation analysis shows that loan and advance (LA) has significant relation with non-performing loan (NPL) in 1 percent level of significance with correlation coefficients 0.718 which means that there is higher degree of positive correlation between loan and advance and non-performing loan. At the same time, loan and advance (LA) has significant relation with loan loss provision (LLP) and net profit (NP) in 1 percent level of significance. However, there is insignificant positive correlation between Loan and advance and net profit. Moreover, the result found that there is significant impact of deposit, non- performing loan and loan loss provision on loan and advance of sample banks. This study recommends that Nepalese commercial banks should work in collaboration with credit reference bureau in the country to thoroughly investigate the past credit worthiness records of loan applicants so as to reduce the rate of default.

After the adoption of International Convergence of Capital Measurement and Capital Standards (widely known as Basel II requirements) in 2004 the risk management in commercial banks has changed dramatically. Lithuanian commercial banks are in transitional period now adapting their risk management systems to Basel II requirements. Market risk is considered one of the key risks in bank risk management structure, so proper management of market risk is essential for a modern bank. Currency exchange risk usually is the main component of market risk. Currency exchange risk management in Lithuanian commercial banks was not good enough; also the Central Bank's regulatory limits were liberal. But after the adoption of Basel II requirements, the entire risk management system is transforming and currency exchange risk management is affected. The objective of this paper is to demonstrate the transformations of currency exchange in Lithuanian commercial banks and propose an effective model for commercial banking. These transformations are performed in the regulatory system imposed by the Central Bank of Lithuania and through transformations of the bank's internal risk management system moving to internal (usually VaR based) models. VaR models are considered as modern methods for risk management. These models proposed by Central bank or other authorities for internal and statutory risk management in commercial banks. In this article, the proposed variation‐covariation VaR model was tested with real data using the back‐testing method. Back‐testing showed that the proposed model is reliable enough, because the number of mismatches was less than 5 % in all tested currency pairs during all testing. In most currency pairs mismatches percentage was lower than 3 %. Back‐testing results confirm that the VaR method is reliable enough for day‐to‐day using by financial institutions and traders.

This paper discusses in depth the importance of liquidity risk management in commercial banks and the challenges it faces at a time of accelerated global economic integration. Financial globalization not only brings unprecedented development opportunities for the banking industry, but also exposes it to more complex and volatile liquidity risks. As an important part of the financial system, the sound operation of commercial banks is crucial for maintaining financial stability and healthy economic development. The article focuses on the current situation of liquidity risk management in Chinese commercial banks and reveals the core issues of weakening deposit base and loan expansion aggravating liquidity pressure through detailed analysis. Subsequently, a combination of literature review and case studies is used to analyze the dual impact of macroeconomic fluctuations and micro-management deficiencies on liquidity risk. Ultimately, the study concludes by emphasizing the key roles of the improvement of the government regulatory system and fintech in optimizing the asset and liability structure of banks and enhancing the efficacy of risk management, which together safeguard the sound operation of the financial system and the sustained and healthy development of the economy.

This study aims to analyze the effect of Risk Based Bank Rating (RBBR) component implementation to the financial performance of conventional commercial banks in Indonesia. The RBBR component is presented by using variables: Non Performing Loan, Loan to Deposit Ratio, Good Corporate Governance, Operational Efficiency Ratio, Net Interest Margin, Capital Adequacy Ratio. Meanwhile, financial performance is measured using Return On Assets (ROA). This study used quantitative methods with secondary data obtained from the websites of each conventional commercial bank. The research sample was selected by using purposive sampling in order to obtain 25 conventional commercial banks in Indonesia during 2010-2019. Data analysis used multiple linear regression analysis by IBM SPSS Statistics 26 program. The results of this study indicate that Non Performing Loan (NPL), Good Corporate Governance (GCG), Capital Adequacy Ratio (CAR) have no effect on the financial performance of conventional commercial banks. Meanwhile, the Loan to Deposit Ratio (LDR) and Operational Efficiency Ratio (REO) have a negative effect on the financial performance of conventional commercial banks, and the Net Interest Margin (NIM) has positive effect on the financial performance of conventional commercial banks.

The restrictions on economic activity during the COVID-19 pandemic harmed banking stability in Indonesia. This is reflected in the decline in banks' financial performance in 2020 due to high losses on various risk profiles. These risks do not only occur under certain conditions, such as a pandemic, but are also inherent in the bank's business activities. Therefore, this study analyzes the impact of credit risk, operational risk, and liquidity risk on bank financial performance in 2019-2024, involving GCG as a moderating variable. The purpose of this analysis is to provide an overview of the quality of risk management in commercial banks in Indonesia. The object of this research is commercial banks listed on the IDX. The research sample consisted of 15 banks, selected through purposive sampling. The data were analyzed using panel data models and moderated regression (MRA). The results showed that credit risk and operational risk had a negative effect, while liquidity risk did not affect bank financial performance. GCG weakens the negative relationship between operational risk and financial performance, but does not moderate the relationship between credit risk and liquidity risk. The findings suggest that the risk management of commercial banks in Indonesia is suboptimal, particularly in terms of credit risk and operational risk. Tighter supervision by GCG is also necessary to mitigate the adverse effects of risk.

This paper analyzed the current situation of credit risk management of commercial banks in China, and analyzed the six risks that China’s commercial banks may face. Then, this paper pointed out four problems in the credit risk management of China’s commercial banks. Finally, according to the specific problems of China’s commercial banks, this paper put forward some concrete countermeasures to perfect the credit risk management of Chinese commercial banks. The article explores the issues in the field of finance.