Business Credit Research Articles

Pengaruh Sikap Petani terhadap Partisipasi Program Kartu Tani di Desa Randangmulya, Kecamatan Pedes, Kabupaten Karawang

Farmers in Rangdumulya Village use the Farmer’s Card Program as a 'bridge' in farming because it is useful for redeeming subsidized fertilizers, borrowing People's Business Credit, saving at the Bank, and selling the harvest to Bulog. However, participation still experiences several obstacles. This study aims to describe attitudes and participation, as well as the effect of attitudes on participation in the Farmer’s Card Program simultaneously and partially. This is a mixed-method research in which 45 respondents participated in proportional sampling. Data were obtained primary and secondary through observation, interviews, questionnaires, and literature studies. Data analysis used interval width test and multiple linear regression. The results showed that 60% of farmers had a supportive attitude towards the Farmer Card Program but the participation level of 68.9% of farmers was still low. The results of the simultaneous influence analysis showed that farmers' cognitive, affective, and conative attitudes had a significant effect on participation in the Farmer Card Program. On the other hand, partially, farmers' cognitive and conative attitudes have a positive and significant effect on participation in the Farmer Card Program, but their affective attitudes have a negative and insignificant effect

Determinants on the selection of rural households’ financial assets in China: marketization or financial literacy?

Financial literacy is an indispensable factor in household asset allocation, but market-oriented reforms are also an external factor that cannot be ignored. Using data from the 2013 and 2019 China Household Financial Survey (CHFS), this paper investigates whether the individual’s ability or the market system hinders rural households’ participation and asset investment in the financial market. Findings reveal that both marketization and financial literacy positively affect residents’ financial activities, but the roles of the two are not the same. Financial literacy is an essential factor in increasing participation in the financial market. Moreover, marketization and financial literacy significantly affect rural financial asset allocation decisions in four ways: changing risk preference, using the Internet, alleviating liquid constraints and increasing education expenditure on offspring. Besides, households’ financial behaviors exhibit a stronger correlation with improved network infrastructure, robust legal frameworks, favorable business credit environments, higher social media penetration, and enhanced human capital.

Analisis model kebijakan program penyaluran “KUR” dalam rangka meningkatkan perilaku kepatuhan wajib pajak pelaku “UMKM”

The Micro, Small, and Medium Enterprises (MSMEs) sector has long been a significant driver of Indonesia's economy, drawing considerable attention from the government. According to the National Medium-Term Development Plan (RPJMN), various strategic measures have been implemented to promote the growth and resilience of MSMEs as a means to enhance national economic independence. However, despite their substantial economic contribution, MSMEs' tax compliance remains low, as reflected in their minimal contribution to tax revenue. The small contribution is an indication that the level of compliance of MSMEs actors in fulfilling their tax obligations is still very low. This research was conducted using a qualitative approach and began by analyzing and evaluating the policy of the People's Business Credit (KUR) distribution program in relation to tax aspects. The analysis and evaluation were based on data sourced from literature studies and interviews with relevant resource persons from the point of view of technical feasibility, economic and financial possibility, political viability, and administrative operability. The results show that the existing policy has not fully accommodated taxation aspects. This is unfortunate considering that the KUR interest subsidy provided by the government to MSMEs actors is financed by the State Budget (APBN), which is mostly sourced from taxes. Furthermore, the study proposes policy model to encourage the development of the MSMEs actors.

Farmer Assessment of the Effectiveness of Empowerment Strategies to Increase Farming Profits

Farmer empowerment is crucial for agricultural development, yet its effectiveness often depends on how well strategies align with farmers' needs. This research aims to determine the effectiveness of the farmer empowerment strategies according to the farmer assessment. The research employs a qualitative multi-case study approach, utilizing in-depth interviews and focus group discussions with farmer group chairmen and members. The study reveals varying levels of effectiveness across seven government-implemented empowerment strategies. These three strategies comprised developing agricultural product marketing systems, consolidating agricultural land, and providing access to science and technology were unfamiliar to participants. The organic fertilizer training strategy was deemed effective in improving competence and profits. Extension services were considered effective in enhancing competence, profits, and productivity. However, institutional strengthening strategies were seen as ineffective in developing farmer groups into cooperatives. Financing facilities through People's Business Credit (PBC).

IMPLEMENTASI METODE NAÏVE BAYES UNTUK PREDIKSI KELAYAKAN BANTUAN MODAL DAN KREDIT USAHA DI DESA SELAT ABIANSEMAL BADUNG

Small, Micro, and Medium Enterprises (MSMEs) are small-scale businesses carried out by individuals or business entities with a certain amount of net worth and sales proceeds. MSMEs in Abiansemal Strait Village, Badung, still use manual methods in analyzing data. Conditions like this are the basis for this study to create a system that can help make it easier for the Abiansemal Badung Strait Village if there is an assistance program from the government, both business capital assistance, and business credit applications to be given to MSME actors. Naïve Bayes' method of classifying MSMEs is built on concepts explored from the interview process, literature studies and system implementation. The design of this system was made using the Python programming language. The CRISP-DM model is a system development method used in the classification of MSMEs. The Feasibility Prediction Model for Capital Assistance and Business Credit using the Naïve Bayes Method can make it easier for users to find out whether the existence of a web-based classification and recommendation system can make it easier for users to carry out the MSME classification process easily and users can see the solutions recommended by referral MSMEs that have better business conditions directly.

Technology Empowers Finance: Boundaries and Risks

BigTech credit has enhanced financial inclusion, but it also poses concerns with its boundaries. This article uses theoretical frameworks and numerical simulations to examine the risks and inclusiveness of technology-empowered credit services for “long-tail” clients. This research discovered that the discrepancy between the commercial boundaries of BigTech credit and the technical limitations of risk management poses a risk in BigTech credit. The expanding boundaries of BigTech’s credit business may mitigate the representativeness of the data, resulting in a systematic deviation of unclear characteristics from the training sample data, which reduces the risk-control model’s ability to identify long-tail customers and raises the risk of credit defaults. Further computer simulations validate these results and demonstrate that competition among various companies would expedite the market’s transition over the boundary in case of a capital shortage. Finally, this article proposes setting up a joint-stock social unified credit technology company with data assets as an investment to facilitate the healthy and orderly development of financial technology institutions.

Pengaruh Penggunaan Kredit Usaha Rakyat Terhadap Pendapatan UMKM (Studi Kasus Umkm Komplek MMTC Medan)

This study aims to determine the effect of the use of People's Business Credit (KUR) on the income of Micro, Small, and Medium Enterprises (MSMEs) in the MMTC Complex in Medan City. MSMEs have a strategic role in driving economic growth, but still face capital constraints. KUR, as a government-subsidized financing program, is expected to help overcome these constraints. The research method used is quantitative with a survey approach. Primary data was obtained through questionnaires distributed to 32 MSME respondents in the MMTC Complex in Medan who had received KUR facilities. Data analysis used a simple regression test to determine the relationship between the KUR variable and MSME income. The results showed that KUR had a positive and significant effect on MSME income. This is indicated by the t-count value of 9.951 which is greater than the t-table of 1.66088, and a significance value of 0.000. The coefficient of determination (R²) shows that 76% of the variation in MSME income is influenced by KUR, while the rest is influenced by other factors outside the study.

External Shocks, Asset Prices, and Credit Dynamics in Morocco: Insights from Disequilibrium Models

We investigate external shocks and asset price’s impact on the slowdown of business and household credit in Morocco using disequilibrium models. The results show that banks’ fly to quality, driven by a simultaneous decline in interest margins and borrower creditworthiness, is a key factor behind the slowdown of credit supply. On the demand side, slower growth and saturated housing demand have contributed to reduced borrowing and repayment capacity of borrowers. Furthermore, external shocks are transmitted to credit supply through foreign deposits and households’ credit demand through remittances. Additionally, stocks and residential real estate asset prices are closely tied to credit demand. These findings suggest that addressing bank credit barriers could stimulate economic growth. To do so, policymakers may consider employing unconventional monetary policy tools to effectively manage the transmission channels of external shocks and asset prices to bank credit dynamics.

PERSEPSI PETANI TERHADAP PENGGUNAAN KREDIT USAHA RAKYAT (KUR) DALAM MENINGKATKAN USAHATANI KOPI DI KECAMATAN SIBOLANGIT

Farmer’s Perceptions of the Use of People’s Business Credit (PBC) in Improving Coffee Farming Businesses in Sibolangit District, Deli Serdang Regency. This study aims to examine the level of farmer’s perceptions and examine the factors that influence farmer’s perceptions of the use of People’s Business Credit (PBC) in improving coffee farming. This research was conducted in Sibolangit District, Deli Serdang Regency, from April to June 2023. The data collection methods were interviews, questionnaires tested for validity and reliability, and recording, while the data analysis method used a Likert scale and multiple linear regression. The study results show that the level of farmer’s perception of using People’s Business Credit (PBC) in improving coffee farming is 82.42 percent. Partial further tests using tcount show that the factors of length of farming, income level, role of extension workers, social environment, and PBC socialization have quite a significant influence, with the tcount value being greater than the table.

It’s not (only) personal, it’s business: personal bankruptcy exemptions and business credit

Abstract In the USA, state-level exemptions determine the amount of property that individuals can protect from creditor liquidation during the debt settlement process. We exploit within-metropolitan statistical area variation in personal bankruptcy exemptions created by state borders and a stacked regression approach to identify the spillover effects of these laws on business credit extended to small firms. Subsequent to exemption increases, we find a reduction of 1–2 percent in originations of business credit. The effect is strongest for the smallest firms, which are more financially constrained. We provide household-level evidence that both business debt and personal debt decline for borrowers whose home equity becomes covered by the exemption, suggesting an overall decrease in credit availability for small businesses. As a result, increases in exemptions lead to fewer small establishments and lower employment, especially in industries dependent on external finance, suggesting that negative real economic effects occur via a credit market channel.

Nexus between green credit efficiency and strategic, business and management digital transformation–based on 114 commercial banks in China

With the expansion of green finance and the digital economy, the discussion on the evolution of green credit business and the digitalization of commercial banks have grown in prominence. However, limited research has been done on how different degrees of digital transformation in commercial banks—the main issuers—affect the way of green credit efficiency. To fill this gap, based on data from 114 Chinese commercial banks between 2010 and 2021, this paper explores the impact of digitalization on the green credit efficiency through the integration of several methodologies. The paper indicates that enhancing the digitalization, business digitization, and management digitization of commercial banks can greatly enhance the effectiveness of green credit businesses, but the impact of strategic digitization is not significant. Further analysis reveals that digitization facilitates the expansion of overall bank assets, thereby bolstering the green credit business. It also investigates the characteristics of commercial banks and the geographical distribution of their headquarters, indicating a diminished promotional impact for urban and rural banks, as well as banks in the central areas. Finally, this study contends that commercial banks ought to leverage digital resources extensively to facilitate digital transformation and bolster the advancement of green credit operations. It is also recommended that the government should implement preferential policies for regions and banks exhibiting slower developmental progress.

Analyzing the Influence of Non-Performing Assets: A Comparative Study between SBI and HDFC

Non-performing assets (NPAs) pose an enduring and intricate challenge within the banking sector, carrying far-reaching consequences for both financial stability and broader economic growth. This paper provides an in-depth analysis of NPAs and their impact on the financial performance of HDFC and SBI. Based on the analysis of the NPA data of the two banks, it is found that the NPA ratio for State Bank of India is in the range of 1.02%-5.73%, which is on the higher side in comparison to the NPA of HDFC, which lies between 0.20%-0.64% for the period 2007-8 to 2021-2022. In both cases, NPA has a negative impact on profitability, but it is much higher in SBI. These findings may help SBI reinvent its credit policy and the credited process of its credit business to different customer segments.

Empirical research on the impact of green credit development on the profitability of commercial banks

This paper examines empirical research on the impact of green credit development on commercial banks’ probability. To promote the green transformation of the economy, the efficient use of resources, and the effective improvement of the ecological environment, it is necessary to vigorously promote the comprehensive development of green finance and the continuous improvement of the green financial system. In terms of improving the green financial system, efforts can start with green credit. This paper uses related data from 10 Chinese listed commercial banks from 2012 to 2020 as panel data, and employs Stata software for empirical research and analysis. The final empirical results show that launching a green credit business may, in the short term, lead to a decrease in the bank's profitability. The reason for this result may be that China has started developing green finance relatively late and for a shorter duration, so the time and number of entities selected for data are very limited. Moreover, the expansion of the green credit business means that while suppressing "two highs and one surplus" enterprises, it also leads to a significant reduction in their loans, thus affecting the profitability of commercial banks. Ultimately, we propose targeted suggestions that align with China’s national conditions and enhance the green credit system.

Loan application due diligence and financing small firms in Africa

ABSTRACT Banks gauge and verify business potential when processing small business loan applications by conducting due diligence on the firm. Although research has examined the factors that influence small business financing, little attention has been given to understanding the due diligence process that informs credit decision making. We address this gap using signal theory to analyze and develop insights from 24 qualitative interviews. Our study identified 11 key hard and soft signals loan officers use to access small business credit risk during due diligence. The key signals include key person risk, change in leadership risk, articulation of company value, adaptation to change, separating business and personal finances, personal reputation, transparency and willingness to share information, data accuracy and completeness, regular account operation, faulty budget and turnover assumptions, and legitimacy of collateral. The implications for small and medium-sized enterprises finance theory and practice are discussed.

Sustainable Finance Meets FinTech: Amplifying Green Credit’s Benefits for Banks

In recent years, green credit has significantly supported the development of the sustainable economy. However, the existing literature presents differing views on the impact of green credit on bank performance, which is crucial for the sustainability of green credit business. Meanwhile, FinTech is comprehensively empowering green credit business. This paper investigates whether FinTech influences the effect of green credit on bank performance. Based on an analysis of data from 127 Chinese commercial banks from 2007 to 2022, we find that green credit significantly enhances bank performance, and FinTech further amplifies this positive effect. This finding partially explains the conflicting views in the existing literature, as the impact of green credit on bank performance varies under different levels of FinTech. We believe that FinTech exerts its influence through three mechanisms: cost reduction, reputation enhancement, and risk mitigation. Heterogeneity analysis reveals that the impact of FinTech is more pronounced in city commercial banks, in samples with better green credit development, and during banking industry downturns. Finally, we recommend that banks actively develop FinTech and apply it to green credit businesses to maximize the positive effects of green credit. Simultaneously, regulators and governments should provide necessary support for banks.

PENGARUH PEMBIAYAAN KREDIT USAHA RAKYAT TERHADAP PENDAPATAN USAHA MIKRO KECIL DAN MENENGAH DI PT. PEGADAIAN SYARI’AH UNIT KARANG BARU

This research aims to find out how the People's Business Credit (KUR) financing process is carried out by PT. Pegadaian Sharia Unit Karang Baru and how much influence People's Business Credit (KUR) financing has on the income of Micro, Small and Medium Enterprises (MSMEs) partially. The type of research used is field research with a quantitative approach. The population used in this research were 229 customers of the PT. Sharia Pegadaian Karang Baru Unit. The sample was selected using the incidental sampling method and calculated using the Slovin formula as many as 70 respondents. The data used in this research is primary data obtained from respondents who filled out the questionnaire. The results of this research show that people's business credit financing obtained a t count value of 15.175 and a t table of 1.66757 with a significant value of 0.000 at a significance level of 0.05. Based on these results it can be seen that t count > t table where 15.175 > 1.66757 and a significant value where 0.000 < 0.05 which means that Ho is rejected and Ha is accepted, so it can be said that the KUR financing variable (X) partially has a positive and significant effect on the income of MSME (Y) customers of PT. Pegadaian Sharia Unit Karang Baru

How does the digital economy affect corporate business credit supply?

Business credit supply entails a firm providing credit to its customers as a means to gain a competitive edge. The advent of the digital economy has brought about profound changes in business practices. In this context, it becomes crucial to examine how the digital economy impacts the business credit supply of enterprises. This study employs a theoretical framework to derive insights and carries out an empirical analysis using the City Digital Economy Development Index spanning from 2008 to 2021, along with data from A-share listed companies in Shanghai and Shenzhen. The objective is to explore the influence of the digital economy on corporate business credit supply and its underlying mechanisms. The findings reveal that the digital economy can enhance corporate business credit supply by reducing the incidence of bad debt, thus enabling companies to extend more credit to their customers. This research contributes empirical evidence for understanding the microeconomic impact of the digital economy, while also providing theoretical insights to advance the development of the digital economy and optimize the allocation of financial resources, thereby alleviating corporate financing constraints.

Analisis Penerimaan Dana Kredit Usaha Rakyat (KUR) Pada UMKM pada PT. Bank BRI Unit Tapa Kota Gorontalo

This research aims to find out whether there is an impact on providing people's business credit (KUR) to MSMEs at PT. Bank Rakyat Indonesia (Persero) Tbk. Tapa Unit Gorontalo Branch Office. This research uses qualitative methods with the data sources used, namely primary and secondary data. The data collection techniques used were observation, interviews and documentation. The object of this research is an analysis of the provision of people's business credit (KUR) funds to PT. BRI bank unit tapa Gorontalo city. The results of the research show that there is an assessment of the character of prospective customers at Bank BRI Tapa unit which is intended to determine the candidate's honesty and good faith in paying off or returning the loan, so that it will not cause difficulties for the bank in the future. The relationship between credit giver and credit recipient is a mutually beneficial cooperative relationship with the credit giver's trust in the credit recipient based on the credit recipient's credit rating. The procedures for granting and assessing credit by the banking world between the BRI Tapa unit and other banks are not much different. The difference may only lie in the procedures and requirements established with individual considerations. Settlement of bad debts in KUR credit at Bank BRI Unit cannot be resolved non-litigationally because Kur itself is a program from the government to make it easier for people who want to do business.

Research on the Impact of Digital Inclusive Finance on Rural Economic Development

Digital technology significantly enhances the efficiency, user experience, coverage, and accessibility of financial services. It effectively addresses the issue of imbalanced and inadequate financial services, provides strong support for the advancement of inclusive finance, and facilitates high-quality development of the real economy. Currently, rural rejuvenation and digital inclusive finance are two prominent topics in China. The objective of this article is to identify and address issues by examining the correlation between digital inclusive finance credit and the rural economy. This paper employs a fixed effects model to examine the correlation between digital inclusive financial credit business and the additional value generated by the primary industry. The results indicate a strong negative association between the digital inclusive financial lending business and the added value of the primary industry. The government should prioritize the simultaneous progress of digitalization and finance in rural areas in order to establish a more comprehensive rural economic and financial system.

MENGUNGKAP FENOMENA KREDIT MACET PADA BADAN USAHA MILIK DESA (BUMDES) DITINJAU DARI GOOD CORPORATE GOVERNANCE (STUDI DI BUMDES ARTHA KRAMA MANDIRI)

This research aims to analyze the implementation of Good Corporate Governance (GCG) principles in credit management at BUMDes Artha Krama Mandiri, efforts that have been and will be made by BUMDes in overcoming Non Performing Loan (NPL) problems, and the impact of NPL for BUMDes Artha Krama Mandiri and stakeholders. This type of research is included in descriptive qualitative research. The results showed that (1) BUMDes Artha Krama Mandiri has implemented GCG principles in the management of the credit business unit, but the implementation of these five principles has not been optimal. 2) Efforts that have been made by BUMDes in overcoming NPL, namely BUMDes has issued summons to customers who have NPL and formed a credit restructuring team. 3) The impact of Non Performing Loan (NPL) is a decrease in profits earned by BUMDes, a decrease in employee salaries, a decrease in PAD provided by BUMDes to the village, and the inability of BUMDes to provide credit services to the community due to NPL problems.