Business Credit Research Articles

The impact of natural disasters on US business credit markets: a comparative analysis of short-term and long-duration events

The impact of natural disasters on US business credit markets: a comparative analysis of short-term and long-duration events

Research on credit risk assessment optimization based on machine learning

Credit business is a vital part of the bank's core business, which has an extremely important impact on the bank's income and development. In the operation of credit business, credit risk assessment is particularly crucial, and accurate risk assessment can minimize risks while maximizing the bank's returns. We propose a method to optimize credit risk assessment using machine learning techniques. In this work, we employ a random forest machine learning model to process and analyze large amounts of loan application data. By using correlation analysis, information enrichment, etc., the characteristics that have the most impact on credit risk assessment are screened. Subsequently, the model was constructed using a random forest algorithm. Random forests improve the generalization ability and accuracy of the model by building multiple decision trees and introducing randomness between these trees. In the experimental analysis part, we compare the performance of various models on the German credit dataset, and the results show that the deep learning model outperforms the traditional machine learning model in most indicators, verifying the effectiveness of our method.

Impact of Sharia Kur financing on performance of MSMEs financing of Indoensian Syariah Banking

Financing for Micro, Small and Medium Enterprises (UMKM) has an important role in the local economy, especially in rural areas such as Gunung Tua, North Padang Lawas. Bank Syariah Indonesia (BSI) Gunung Tua Sub-Branch Office (KCP) provides Sharia People's Business Credit (KUR) financing to support MSMEs in increasing working capital and investment. This research aims to examine the impact of KUR Syariah financing on the Performing Financing of UMKM under the guidance of BSI KCP Gunung Tua. The research method used is mix method with a case study approach. Data was collected through in-depth interviews with KUR Syariah BSI KCP Gunung Tua managers and UMKM owners who received financing, as well as through direct observation and analysis of related documents. The research results show that KUR Syariah financing from BSI KCP Gunung Tua has a positive impact on increasing UMKM Financing Performance. The socialization and information dissemination strategy carried out by BSI KCP Gunung Tua has succeeded in increasing UMKM awareness and interest in KUR Syariah financing. An easy and transparent financing process and the implementation of a strict monitoring system also support the effectiveness of this financing. KUR Syariah financing from BSI KCP Gunung Tua not only provides the capital needed by UMKM, but also plays an important role in the economic empowerment of UMKM and local communities. By continuing to improve marketing and service strategies, BSI can continue to be a reliable partner for UMKM in developing their businesses.

Digital economy and entrepreneurial vitalityCausal inference based on double machine learning

While digital economy provides entrepreneurs with convenient data elements, it also narrates their cognition due to its redundant information and data deluge. Based on the contradiction between the dilemma of information cocoon and the goal of wisdom sharing in the context of digital economy, this paper selects 248 prefecture-level cities in China from 2010 to 2019 as research samples and takes the policy of National Big Data Comprehensive Pilot Zone as the treatment variable, empirically analyzing the impact of digital economy on entrepreneurial vitality by the double machine learning model. The results indicate that: (1) Digital economy has a significant positive impact on entrepreneurial vitality; (2) Compared with the western region, the impact of digital economy on entrepreneurial vitality is more significant in the eastern and central regions, and there is heterogeneity among cities at different levels; (3) Optimizing the business credit environment and coordinating the digital infrastructure are two mechanisms between them.

Financing constraints of firms: Is there political favoritism in the economic resources given by the central government?

AbstractEconomic resources within the jurisdiction of local governments in China shape the external financing environment of enterprises. However, few studies have focused on China's unique political hierarchy, which results in differentiated access to economic resources for different levels of local governments and substantially affects local corporate financing constraints. This paper examines the impact of city political hierarchy on firm financing constraints among Chinese A‐share listed firms from 2004 to 2019. We use the 200,000 population criterion for delineating the political hierarchy of cities in 1927 as the cutoff for fuzzy regression discontinuity design to identify causal effects. The results show that the greater a city's political rank is, the lower its financing constraints are. The mechanism suggests that the central government provides more financial and political resources to high‐level cities, directly and indirectly influencing the financing constraints of firms. In addition, high‐level cities' government preferences, bank loans, debt financing costs, and business credit are vital channels at the firm level. However, this effect varies depending on the ownership and size of the firm.

How Microcredit Programs Improve Business Household Well-being in the Local Economy? An Impact Evaluation

Household welfare can be improved through microfinancial institutions' support by providing microcredit programs. The shock of the COVID-19 pandemic caused the impact on household welfare to decrease by 2.6% in 2020 in Bengkulu. This study aims to evaluate the impact of the People's Business Credit (KUR) program on the welfare of business households in Bengkulu Province through the National Socio-Economic Survey of the Central Bureau of Statistics (SUSENAS) for the 2022 wave using the propensity score matching (PSM) method. The study results show that microcredit influences household welfare in Bengkulu. Households receiving KUR had higher expenditures of 8.89% than groups not receiving the KUR program. In addition, age, number of households, education, savings account, marital status, and agricultural business influence KUR program recipient participation. The KUR program is expected to improve the quality of MSMEs and provide recommendations for enhancing KUR program services to related financial institutions.

Factors Affecting Farmer Poverty and Efforts to Overcome It In Tanjung Jabung Timur District

This study aims to analyze the effect of technology, own capital, people's business credit, training, and agricultural institutions on the income of farmers in East Tanjung Jabung Regency and analyze poverty reduction strategies for farmers in East Tanjung Jabung Regency. The analysis tools used are multiple linear regression analysis and SWOT analysis. Based on the results of multiple linear regression partially owned capital, people's business credit, training, and agricultural institutions have a significant effect on the income of food farmers in East Tanjung Jabung Regency. Meanwhile, technology does not have a significant effect on the income of food farmers in East Tanjung Jabung Regency. The results of the SWOT analysis show that the strategy used for poverty reduction in farmers in East Tanjung Jabung Regency is in quadrant I position, which is a progressive recommendation, which means a very favorable situation for farmers in East Tanjung Jabung Regency because it has opportunities and strength so that it can take advantage of existing opportunities to overcome poverty

Financial inclusion strategy to increase the income of micro, small and medium enterprises through business credit in Indonesia

Financial inclusion strategy to increase the income of micro, small and medium enterprises through business credit in Indonesia

TINJAUAN HUKUM EKONOMI SYARIAH TERHADAP KREDIT USAHA RAKYAT (KUR) SYARIAH PADA PEGADAIAN SYARIAH CABANG PASAR RENTENG PRAYA LOMBOK TENGAH

UMKM have great potential in economic development in Indonesia. However, there are still many UMKM sectors that face problems in developing their businesses, namely limited financial problems in obtaining additional capital. Currently, many financial services offer capital loans, one of which is the Renteng Sharia Pawnshop institution which distributes Super Micro People's Business Credit (KUR). Because the distribution of Super Micro KUR has only just begun to be distributed, it is necessary to examine everything related to distribution practices, namely the process/procedures, terms, contracts, conditions and whether the problem resolution process is in accordance with the economic system in sharia economic law. This research uses a field/empirical approach with qualitative research methods that describe the objects or subjects studied in depth using empirical evidence obtained through interviews, observation, documentation of reality in the field. The research results show that credit in Islam is permissible because originally there was no text that forbade it. Most scholars say yes. The distribution of Super Micro KUR at Renteng Syariah Pegadaian does not contain anything that is detrimental to both parties and is in accordance with sharia economic law because it has implemented the principles of justice ('adl), balance (tawazun), benefit (maslahah), and does not contain elements of gharar (vagueness/obscurity). vaguely, maysir (gambling), usury, dzulm (tyranny), risywah (bribery), and other haram objects.

Does trade credit facilitate high-quality development in agricultural enterprises? – Insights from Chinese enterprises

Agriculture is crucial for the economy and individuals, and there is a pressing need to improve its quality, efficiency, and competitiveness in emerging countries. This study uses data from Chinese-listed companies to investigate the effect of trade credit on agricultural firms’ total factor productivity. The results demonstrate that trade credit access and provision can increase agribusinesses’ total factor productivity. Heterogeneity analysis reveals that access to business credit has a higher contribution to total factor productivity for agribusinesses in the primary sector, for firms in the versus maturity stage, and with low or medium supplier concentration. The provision of trade credit has a more pronounced positive impact on agribusinesses in the maturing stage and enterprises with low or medium customer concentration. This paper further validates the channels of action through which trade credit affects a firm’s high-quality development. This research makes a valuable contribution to enhancing the quality and productivity of China’s agricultural sector.

Penilaian Tingkat Kesehatan Keuangan Badan Usaha Kredit Pedesaan (BUKP) Di Kabupaten Sleman

This research aims to determine the level of financial health of Rural Credit Business Entities (BUKP) in Sleman Regency. As well as to find out what obstacles and barriers exist in Rural Credit Business Entities (BUKP) in Sleman Regency. This research applies descriptive qualitative research methods, where the source of research data comes from the Regional Secretariat of Sleman Regency. Data sources used in this research include primary data and secondary data. Research data includes the results of interviews, observations and document reviews, as well as information from previous researchers which is used as a theoretical reference. The results of this research show efforts to increase the health level of BUKP in 17 sub-districts in Sleman Regency. Through calculations carried out on the aspects of NPL, LDR, RTA, RTE, NIM, BOPO and CAR, results can be found on the level of financial health of Rural Credit Enterprises (BUKP) in 17 sub-districts in Sleman Regency. In particular, for academics who study the criteria for assessing the level of financial health of BUKP, it is hoped that this research can serve as a comparison and at the same time a reference in exploring this problem. The agencies that host research may vary, but the basis and framework of this research can help researchers who wish to conduct similar research to explore various issues related to the criteria for assessing the level of financial health of BUKP.

Estimasi Pemberian Pinjaman Kredit Usaha Rakyat (KUR) di Bank BRI Unit Tangkerang Pekanbaru menggunakan Regresi Logistik

People’s Business Credit (KUR) is vulnerable to unwanted risks such as bad credit. The reduce bad credit, banks need to analyze whether customer debtors meet the requirements for credit. The aim of this research is to determine the logistic regression analysis model and determine the factors that influence the provision of People's Business Credit (KUR) at Bank BRI Unit Tangkerang Pekanbaru. The method used is the Logistic Regression method. Based on the research results, it was found that the factors that influence the provision of People's Business Credit (KUR) at Bank BRI Unit Tangkerang Pekanbaru are business turnover and business profit. So the logistic equation is obtained with the resulting logit function being g(x) = -11.587+0.501x_1+2.549x_2. The calcification value for granting People's Business Credit (KUR) using logistic regression is 93.84%.

Use of SWOT analysis to select feasible businesses as the mainstay business of BUMDes and MSMEs

COVID-19 pandemic, which lasted from 2020 to 2022, has affected the global economy. Activity restrictions had hampered the progress of various business sectors. As a result, there was a decline in economic growth globally. There was even an economic contraction of -13.7% in 2020 and many businesses experienced either setbacks or bankruptcies. Indonesia’s government made various recovery efforts, such as business assistance through village-owned enterprises (BUMDes) activities and capital assistance for MSMEs in the form of people’s business credit (Kredit Usaha Rakyat/KUR). Various trainings and assistance were conducted, but these activities focused more on reporting and administration of funds. The establishment of BUMDes mainly aims to improve the villages’ economy. The selection of BUMDes' mainstay business is highly important to realize the smooth running of the business chosen. For this reason, it is necessary to conduct training on how to select of the mainstay business and calculate the feasibility of the business chosen to be developed so that BUMDes and MSME actors can manage and develop their business properly. The selection can use SWOT analysis, namely by analyzing the strengths, weaknesses, opportunities, and threats of the potential business options. In this community services activity, BUMDes and MSME training was held in Bogorejo Village, Pesawaran Regency, Lampung Province. The results of SWOT analysis reveal that the feasible business options are digital financial services (BRI-Link), agricultural trading (waserda), and waste collection and waste bank. Waserda business aims to help market the local community's products. Waste management business economically generates small profits, but has long-term positive effects, both environmentally and socially. Meanwhile, tourism park and savings and loan are considered not feasible in the long-term, as these businesses are susceptible to bottlenecks and large losses so that they must be managed very carefully.

Pengaruh Kredit Usaha Rakyat (KUR) Terhadap Pendapatan Usaha Pada UMKM

The problem that is often faced by every UMKM is inseparable from the need for funds to finance their business. To meet their needs, almost all UMKM use their own capital besides that through banks which are often known as People's Business Credit (KUR). People's Business Credit Loans are one way and also an alternative that is usually used by business owners ranging from large, medium and even small businesses, which applies when you don't have enough capital to create a new business or develop an existing business.

Merchant gang culture and financial slack: Empirical evidence from listed companies

The phrase "merchant gang culture" refers to the established norms and corporate philosophy developed over time through commercial practices. This study examines how this culture influences the financial slack. Specifically, this paper explores the relationship between corporate merchant gang culture and financial slack. The data utilized for this research spans the years 2011 to 2021. Increasing the intensity of corporate merchant gang culture can effectively strengthen corporate financial slack. Moreover, the mechanism analysis demonstrates that corporate financial slack is improved by the intensity of corporate merchant gang culture, primarily through financing constraint reduction and business credit improvement effects.

ANALISIS PERAN KOPERASI SYARIAH BAGI MASYARAKAT

This research aims to determine the role of sharia cooperatives in improving welfare and the mechanism for distributing productive financing to the community, especially traders around the Medan Tasbih Complex. The research method used is descriptive analytical research using data collection through field observation, interviews and documentation. The results of this research show that the BMT Al-Musabbihin sharia cooperative has provided many benefits for the community to gain prosperity and be free from the detrimental practice of usury and reduce the dependence of small traders from financial institutions on conventional banks and loan sharks. The BMT AL Musabbihin sharia cooperative has played a role in providing business credit to increase business capital through savings and loan credit, namely providing investment capital to its members, especially among Small and Medium Enterprise (SME).

Sosialisasi Hukum Perbankan Pembiayaan Kredit Usaha Rakyat (KUR) Bagi Pengembangan UMKM di Desa Kalidungjaya Karawang

The People's Business Credit Program is one of the government's programs to increase access to financing for Micro, Small, and Medium Enterprises (MSMEs) which is channeled through financial institutions with a guarantee pattern. The financing distributed by people's business credit comes from banking funds or financial institutions that are people's business credit distributors. The funds provided are in the form of working capital and investment funds which are distributed to individual/individual MSMEs, business entities, and/or business groups who have productive and viable businesses but do not have additional collateral and also do not have good financial records. Even though the government has provided large MSME funds, the public is still unaware of people's business credit distribution. The people's business credit program is still the spearhead of government programs in efforts to expand access to financing for micro, small, and medium enterprises. The main aim of implementing this socialization is for the community to be able to develop their business into a bigger one, have business activities with good financial reports, and have no doubts about applying for people's business credit to the nearest state-owned bank to expand their business.

Manfaat Kredit Usaha Rakyat Bagi Pelaku Usaha Kecil Dan Menengah Di Kecamatan Langke Rembong Kabupaten Manggarai

This research aims to explain the benefits of providing BRI Bank People's Business Credit loans for Small and Medium Enterprises. This research was conducted at Bank Rakyat Indonesia because it is one of the banks that distributes the KUR assistance program. This research uses primary data and secondary data. The research results show the benefits of providing BRI bank KUR assistance to SMEs, namely that small and medium business actors are helped by getting capital to open a business, develop businesses that are already running and can provide employment assistance for other people. Obstacles that small and medium business actors often face when applying for small and medium business credit assistance include incomplete requirements, bad personalities and inappropriate credit guarantees. It is hoped that the provision of people's business credit loans will be able to provide benefits to small and medium business owners, both for the businesses they run and to fulfill other economic needs.

Reject inference in credit scoring based on cost-sensitive learning and joint distribution adaptation method

As traditional credit evaluation methods generally only use accepted sample modeling, the rejected data is omitted, which means the model's prediction of new customers is biased. However, reject inference can be used to solve this credit evaluation sample selection bias. This paper proposes a new reject inference method based on joint distribution adaptation (JDA) and cost-sensitive semi-supervised support vector machines (CS4VM). First, this method uses both accepted (labeled) samples and rejected (unlabeled) samples modeling, which overcomes the deviations in traditional credit evaluation methods. Second, as the accepted sample and the rejected sample distributions are different, this method reduces the distribution differences between the accepted and rejected sample sets, which ensures that the sample data conforms to the basic assumptions in the semi-supervised model, and improves the performance of the classification model. Third, this method reduces the overall cost in the actual credit business by considering both the traditional misclassification costs when mining the default samples and the different decision weights for the accepted and rejected samples. Finally, an empirical study verifies the excellent predictive performance of the proposed method and effectively reduces the total credit costs.

Evaluating Women's Economic Empowerment During COVID-19 Pandemic in South Sulawesi, Indonesia

The factual condition resulting from the COVID-19 pandemic has changed and impacted various aspects of Indonesian society. It also made women one of the vulnerable and affected groups, requiring them to face various challenges, including loss of livelihoods as family breadwinners, and gender-based violence. Outside of Java, the region with the highest number of COVID-19 cases is South Sulawesi Province, with a total of 62,672 cases. This had an economic impact on communities and families, particularly affecting women, especially domestic workers, and female heads of households. This research aims to evaluate the effectiveness and efficiency of government policies and programs in South Sulawesi Province regarding domestic workers and female heads of households. It directly conducted interviews with stakeholders from the government, women's organizations, and domestic workers and female heads of households. It found that the COVID-19 pandemic significantly impacted women who are heads of households and female domestic workers. The situation for women leading households worsened during the COVID-19 pandemic as they had to navigate the crisis on their own. The situation and conditions of female domestic workers during the COVID-19 pandemic were also dire. Some of them were unilaterally terminated, while others were forced to work daily at their employers' homes, risking virus transmission during their commute due to inadequate personal protective equipment. Those who were laid off by their employers faced a crisis, as they had no income, especially when their spouses, who also worked in the informal sector, stopped working simultaneously. It revealed that both the government of South Sulawesi empowered female heads of households by distributing productive business capital assistance and providing support for female SMEs to access people's business credit. However, in contrast to the reality faced by female domestic workers, this group of women did not receive any social and economic assistance from the government during the COVID-19 pandemic.