Conditions Of Economic Crisis Research Articles

Финансовая устойчивость организации в период экономического кризиса

It is devoted to the actual problem of maintaining and preserving the financial stability of the enterprise in the conditions of economic crisis. Signs of financial stability are given, as well as signs that influence it. The goals and objectives of forming a financial management strategy in a crisis are considered

Corporate Investment and Corporate Performance: Do Crisis Matter?

Corporate performance is an achievement of success from a series of corporate activities in several predetermined strategies. Investing in goods and capital increases the firm's value and therefore the firm's performance will be different during the economic crisis and normal conditions. The study aims to examine the relationship between corporate investment and corporate performance. Furthermore, this study also does a different test of the corporate investment effect on corporate performance between the normal and crisis periods. We use the Capital Expenditure and Net Working Capital as measurements of corporate investment and firm performance proxied by operating profit margin. The sample used are 243 non-financial industries firms listed on the Indonesia Stock Exchange (IDX) for the 2017-2021 period, then there is 1215 observation data. The data were analyzed descriptively, and then panel data regression was used for testing the hypotheses. The results showed that the company's investment had a positive effect on the company's performance and there was a significant difference in these influences in both normal and crises periods. This finding has implications that companies can continue investing to improve their performance with economic growth as main consideration for investment decision-making.

Analysis of the Stability of the Banking Sector of Azerbaijan in Conditions of Economic Crisis Based on the Econometric Model

This article is devoted to the influence of a number of macroeconomic indexes on the amount of reserves for possible losses in the Azerbaijan banking sector.The purpose of research. The purpose of the research to analyze the stability of the banking sector to the impact of macroeconomic shocks in the economy, study what the concept of financial stability of the banking sector includes, and what methods are used in the process of its analysis and assessment, investigate the dependence of a number of variables characterizing the state of the banking sector on various macroeconomic shocks inherent in the economy, analyze how the Central Bank is involved in regulating and monitoring the financial stability of the banking sector, as well as through what measures it supports banks in times of crisis.Materials and мethodology. The practical stage of the work is to create a multiple regression model that will reveal the degree of impact of macroeconomic shocks on the position of the Azerbaijan banking sector. To carry out the analysis and construct regression equations, quarterly data for the period 2012-2023 were used. Information was taken from a number of sources: 1) Official website of the Central Bank of Azerbaijan; 2) Official website of Ministry of Finance; 3) Official website of Azerbaijan State Statistics Committee; 4) Reports on the development of the banking sector and banking supervision. To analyze and estimating the values of the dependent variables of provisions for possible losses and return on assets, values for the banking sector as a whole are taken from annual reports on the development of the banking sector and banking supervision.Since the source data in the work is quarterly, our model will be a time series estimated using the ordinary least squares (OLS) method. Lagged variables may be included in the time series. The lags in the explanatory variables take into account the degree of possible lag with which macroeconomic shocks affect banks. In other words, changes in the values of macroeconomic factors do not have an immediate impact on the position of banks, but appear after some time and are delayed [7]. Such lags need to be identified and taken into account in order to form a more accurate and complete picture of the impact of macroeconomic fluctuations on the banking sector.During preliminary diagnostics of the data, the presence of heteroscedasticity and first-order autocorrelation was revealed. To eliminate it, Newey-West corrections are applied, adjusting the variation-covariance matrix to obtain more consistent estimates of regression coefficients.Results. When selecting indexes to study the degree of impact of macroeconomic factors on the stability of the banking sector, we took into account the peculiarities of the economy of our country. The fact is that Azerbaijan is a raw materials country, the export of which consists of almost 70% of fuel and energy products [30]. This means that the size of export revenues, the financial position of companies and the stability of the economy are highly dependent on the price situation in the global energy market, namely the price of oil.In addition, Azerbaijan belongs to a number of countries with an emerging market, which is characterized by increased volatility of exchange rates and instability of financial markets and high interest rates and spreads. Therefore, our country is characterized by the risk of a sharp outflow of capital in the event of a crisis in the world, as investors seek to withdraw their funds from countries that are most vulnerable to the influence of macroeconomic shocks.GDP dynamics are one of the important indicators of the economic activity of the state. Its fall during the crisis negatively affects various spheres of economic and social life [8].The Baku stock exchange index reflects the state of the stock market of large companies, which are the most important for the country’s economy [9]. The collapse of the index means a deterioration in the position of companies, a decrease in the market value of their assets and shares, and increases problems with paying external debt and obtaining new loans to ensure the functioning of their activities. In addition, the collapse of quotes on the stock market leads to large losses as a result of their negative revaluation.Conclusion. When conducting a research of the sustainability of the banking sector in Azerbaijan based on an econometric model, it is necessary to take into account certain limitations. First, the availability and reliability of data is an important aspect that can affect the accuracy of the study results. Secondly, to fully understand the issues under study, it is necessary to take into account the context and specifics of the banking system of Azerbaijan. Finally, this study does not examine social and political factors that may also influence the sustainability of the banking system. Limitations of the study should be considered when interpreting the results and making recommendations.

Choice of tools of anti-crisis management at industrial enterprises of Ukraine

The relevance of the research of the tools of anti-crisis management at domestic enterprises and the prerequisites for its optimization in conditions of systemic financial and economic crisis and military conflict are substantiated. The structure of the anti-crisis management system and peculiarities of choosing the anti-crisis management toolkit are defined, which includes tools for identifying the crisis at the enterprise, tools for developing anti-crisis management decisions and tools for assessing the effectiveness of adopted anti-crisis management decisions. It is substantiated that the concept of anti-crisis management determines the relationship between the components of the "reactive" and "preventive" character in the anti-crisis management system, the role and place of the anti-crisis component in the general strategy of enterprise management. The concept of crisis management should take into account such features of the enterprise as: size, industry, methods of capital formation, stage of the life cycle of the enterprise, types of production and financial strategy, market position, types of risks inherent in this enterprise. The tools of crisis management at the enterprise are investigated within two large groups: diagnostic methods and methods aimed at overcoming the crisis. The tools of crisis management are considered in terms of the stages of crisis at the enterprise. The priority of preventive measures in the anti-crisis management system has been determined. The model of anti-crisis management tools is proposed taking into account the factors of crisis, stages of crisis, tasks of anti-crisis management at the enterprise. Therefore, during the study, stages, crisis factors, the structure of the crisis management toolkit, which includes both tools for diagnosing the crisis state at the enterprise and directly tools for overcoming the crisis, which can be the basis for optimizing the crisis management system at the enterprise, are determined.

Entrepreneurial Risk in Conditions of Economic Crisis: Analysis of Law Enforcement Practice

The significance of the risk category is generally recognized in Russian civil law. This institution becomes even more relevant in times of crisis, in times of economic instability and market volatility. An analysis of current judicial practice demonstrates that during the COVID-19 coronavirus pandemic and the introduction of sanctions restrictions, entrepreneurs were often forced to resort to amendment and termination of contracts due to a significant change in circumstances and to file claims for exemption from liability for violation of contractual obligations due to the occurrence of the force majeure. Russian courts apply these legal institutions in close connection with the category of business risk, however, due to the lack of a legal definition of this term and the wide variety of concepts of risk in legal doctrine, judicial discretion plays a significant role in resolving cases. Extremely broad discretionary powers of judges and legal uncertainty regarding business risk can lead to destabilization of civil law transactions and negatively affect the economic development of Russia. In this regard, the author advocates consolidating the concept of business risk, as well as its permissible and justified limits, if not at the legislative level, then at least in the explanations of Russian higher courts.

ТЕОРЕТИЧНІ ОСНОВИ УПРАВЛІННЯ ІННОВАЦІЙНОЮ ДІЯЛЬНІСТЮ ПІДПРИЄМСТВ ГОТЕЛЬНО-РЕСТОРАННОГО БІЗНЕСУ

The from how correctly the system of innovative management of the development of the hotel and restaurant industry is being implemented at the current stage, it should be perceived by managers as an effective way of responding to market challenges, taking into account innovative processes and the latest trends in business development. The modern interpretation of innovation is complex and involves management actions, business motives, business activity and the ability to innovate. In accordance with international norms, it was determined that “innovation” is defined as the final result of innovative activity, which was embodied in the form of a new or improved product introduced on the market, a new or improved technological process used in practical activities, or in a new approach to “social services”. It is important to note that the introduction of various innovations prompts the management of the company to make logical and necessary changes in the structure of the organization, as well as changes in the methods of organization and management of the company. Conducting innovative activities is one of the key responsibilities of enterprise managers. Managers should take environmental factors into account, as the innovation market in Ukraine is dynamic and stable. Many external factors can interfere with the innovative activity of the enterprise. The use of innovative marketing in the hotel service depends on its orientation and the nature of the concept on which the innovation is based. Innovations that are most often found in the practice of the hotel business include: sensory marketing, aroma marketing, branding, loyalty programs, the use of multimedia technologies, promotion in social networks, electronic distribution, mobile device of the guest A modern hotel enterprise must learn to skillfully regulate its activities with the help of innovative marketing, which will allow it to significantly reduce the risks associated with the introduction of innovations, leaving the opportunity to maneuver resources in conditions of economic crisis and increased competition in the markets.

Features of personnel management in the conditions of economic crisis

Features of personnel management in the conditions of economic crisis

Новая роль кооперации в условиях экономических санкций: оценки жителей Калининградской области

The current economic crisis conditions call for a search for new mechanisms to maintain the population’s well-being. Within this setting, cooperation may be considered a priority form of entrepreneurial activity, enabling the consolidation of financial resources and reducing business costs. This article aims to assess the potential of consumer cooperation in the Kaliningrad region under anti-Russian sanctions. The authors analyse the features of cooperation development within the territory and investigate the demands and expectations of the local populace. The principal method employed in the study is a survey of residents of the Kaliningrad region (N = 481), with its results strongly indicating that conditions for a renaissance of cooperative economic models have emerged in the Russian exclave. The region’s residents tend to express positive attitudes towards cooperation, drawing a link between economically challenging conditions and opportunities for cooperative development. Moreover, amongst respondents with personal or vicarious experience of cooperation, a substantially higher proportion assess cooperative practices positively. Yet, the deficit of interpersonal trust places a serious limitation on the development of cooperation. It is concluded that the economic crisis has shifted the focus of the region’s population’s expectations from social interests (collaborations with like-minded individuals) to undertakings aimed at increasing material well-being. Therefore, expectations of participating in cooperative activities are primarily associated with the opportunity to start one’s own business and increase personal income.

ASSESSMENT OF STATE SUPPORT OF THE ECONOMY IN A CRISIS

In conditions of economic crisis, government agencies often adopt a number of programs in order to stabilize the economic situation in the country. Such measures may include increased government spending, lower tax rates, or financial assistance to certain sectors of the economy. However, in the process of implementing such measures, the state should monitor the effective use of public resources. Therefore, the state audit is necessary to ensure transparency and efficiency of the work of state bodies, as well as to improve the financial results of the state as a whole. In the context of the economic crisis associatedwith the post-pandemic period, geopolitical and geo-economic instability, the role of the state audit in theimplementation of anti-crisis measures becomes even more important.An important aspect of this work is the identification of problems related to the evaluation of the effectiveness of the state audit and the limitations faced by auditors when conducting a state audit.The purpose of this study is to study the role of the state audit in improving the efficiency of the use of funds in the framework of measures to overcome crisis phenomena on the basis of an improved methodology for evaluating effectiveness.The methods of assessing the effectiveness of macroeconomic policy based on the experience of thegovernments of the G7 countries have been studied. The methodology of the process of studying the components of the crisis impact of this policy, including the definition of success criteria, has been developed.Recommendations for improving the anti-crisis strategy in the context of global disasters are proposed. The results of this study remain relevant in the context of the current economic crisis caused by geopolitical tensions.

Personnel Potential in Agribusiness Enterprises in the Context of an Innovation Economy

The sustainability of social and economic development of countries and individual regions depends on various factors, one of which is the personnel potential shaping the labour market. In recent years, the number of people employed in agriculture has declined and has led to a shortage of agricultural personnel in the labour market. The aim of the research is to study the condition of human resources in agricultural enterprises under the conditions of pandemic and economic crisis and to identify ways of solving personnel problems. The object of the study is the personnel potential in agricultural enterprises in the example of the countries of the Eurasian Economic Union for the period from 2016 to 2020. The methods of comparative analysis, absolute and relative values, and abstract thinking served as a methodological basis for the study. The information base of the study was statistical data from the Eurasian Economic Union, and the works of scientists. The article analyses the dynamics of the urban and rural population in the countries of the Eurasian Economic Union, the number of the employed population by types of economic activity, including the agricultural sector. The main task of improvement of agricultural and industrial enterprises is to provide the industry with highly qualified personnel, solve which it is necessary to pay a lot of attention to agricultural education. Currently, many school graduates do not want to work in the agricultural sector due to the fact that it is considered unclaimed, non-prestigious, and low-paid. Therefore, various measures are needed within the states to attract graduates to the agricultural sector and to retain young professionals in rural areas. The article identifies and proposes the main ways of improving the training of in-demand personnel for agricultural and industrial enterprises based on conducted research.

KYIV ARCHITECTURE OF THE SECOND HALF OF THE 20TH CENTURY: BIOGRAPHY OF THE ARCHITECT IN THE CONTEXT OF THE ERA (CREATIVE PATH OF ARCHITECT OLEKSANDR HORBYK)

The contextuality of the life and creative path of the architect's personality is emphasized in relation to the social-cultural and political-ideological conditions of the era, which are the framework of development. The political-economic, moral-worldview, and cultural changes in the society are considered and the corresponding stylistic changes in the architecture of Kyiv in the 50s-90s of the 20th century are characterized. It is shown how drastically and in connection with what the priorities in the architecture of Ukraine changed every ten years and how, in the fight against these challenges, the professional path of the generation that was born during the times of Stalinist repressions and war, grew up in the conditions of stable state-political regulation and culture of enlightenment, realized its life potential in the conditions of economic crisis and state collapse, grew old in the conditions of the new statehood, new social relations and technological transformations. The life and creative path of the Kyiv architect Oleksandr Horbyk is a revealing illustration of both realized opportunities and limitations created. The taste formed by the post-war historical center of Kyiv, the academic university education acquired at the Kyiv institute of Architecture had a limited opportunity to be realized in the practice of typical architecture - functional and combinatory in planning and constructive components. Such recreation centers in the Crimea and on the rivers and lakes of Ukraine, large-panel schools and kindergartens in Kyiv have proven the success of the architectural solution by the practice of functioning to this day. However, typical projects created certain ideological narratives of limitation and lack of freedom in the society of users, and the non-realization of creative futuristic and competitive projects belittled the creative potential of the architect. Attempts to diversify the professional path with teaching and scientific activities, artistic creativity, sports and travels, raising a dynasty of scientists were a certain compensator. The article contains data on the design practice of the Kyiv, list of scientific publications on the actual scientific topics of the second half of the 20th century.

Influence of leader to strategy formation process in enterprise

The dynamic change in the external environment of Ukrainian enterprises in recent years is characterized by the deterioration of the conditions for the functioning of organizations. Quarantine measures caused by the COVID-19 epidemic have changed the usual conditions of business activity. The military aggression of the russian federation against Ukraine destroys the best strategies and development projects of enterprises. Unpredictable conditions of business functioning in modern conditions require managers to adapt the existing strategy of enterprise development or create a new actual strategy of enterprise functioning in conditions of economic crisis. The personal characteristics of the leader, which directly affect the process of developing the company's development strategy, were chosen as the object of the study. Positive and negative characteristics aimed at understanding the leader's actions, the leader's making of impulsive or measured decisions and their consequences were studied. The work reveals the influence of the leader on the process of forming the company's strategy. In the course of the study, the interpretation of the concepts of «strategic thinking» and «strategic planning», «leadership» and «management» by scientists is given. Common and different between them are established. A number of features that can be used to determine a manager's effectiveness are identified, namely: the manager's personal characteristics, the main organizational factors of managerial effectiveness, and a number of limitations that prevent the full realization of all the manager's personal capabilities. The key elements of the manager's high efficiency pyramid are analyzed. Two principles of maintaining the state of ideal work productivity of the leader are given. Four types of personal shortcomings of the leader and their impact on the process of strategy formation are presented. Mitigating actions to overcome personal shortcomings of leaders are identified. The obtained results can be used in the process of forming an enterprise development strategy based on the leader's personal characteristics and the leader's behavior model.

Peculiarities of strategic management of risks of economic activity of enterprises in conditions of systemic crisis in Ukraine

The role of risk as a base category in the enterprise management system is substantiated, which determines the possibility of losses and additional costs and, at the same time, is a necessary condition for profit. The essence and components of the process of economic risk management at the enterprise are investigated. It is determined that the process of economic risk management characterizes the combination of the following main components: identification and assessment of the level of risk; making management decisions and choosing risk management tools; implementation of adopted risk management decisions; control over the implementation of management decisions and assessment of their effectiveness. The composition of internal regulatory documents that can be used to regulate economic relations in the field of risk management at the enterprise is determined. Principles and peculiarities of formation of risk management strategy at the enterprise in conditions of systemic financial and economic crisis are organized. It is substantiated that strategic risk management should be based on the principles: complexity, adaptability, analytics, economy and scientific substantiation. The main stages of formation of strategy of management of risk of economic activity of enterprise are substantiated: identification and structuring of risks; analysis of the nature and characteristics of risk factors; assessment of the level of exposure to individual types of risk and determination of the overall level of risk; forecasting of losses of the enterprise as a result of occurrence of risk events by certain types of risks; making strategic decisions on risk management and developing a mechanism for practical implementation of the risk management strategy. A model of the enterprise risk management process with a focus on the strategic component of management with an enhanced control and analytical component and an adaptive component has been developed.

THE INFLUENCE OF INFORMATION TRANSPARENCY ON THE VALUE INDICATORS OF SECURITIES DURING THE CRISIS, TAKING INTO ACCOUNT THE TIME HORIZON OF INVESTMENT

In the conditions of the turbulence of the stock markets, the low level of publicity and transparency of the published information and the increase of uncertainty regarding the future development of socio-economic processes, it is relevant to analyze the relationship between the risk and the yield of the securities of companies that were most vulnerable to the financial and economic crisis caused by the pandemic Covid-19. The purpose of the article is to analyze indicators of profitability, risk and variability based on the analysis of the value of shares of the analyzed companies in the pharmaceutical, aviation, transport and information industries of the economy in the conditions of financial and economic crisis and global uncertainty. In the process of analysis, it was determined that the most vulnerable to the consequences of the financial and economic crisis are the sectors of the economy that have experienced significant financial, economic, and personnel losses. It has been established that the lack of an adequate level of information transparency is one of the determining factors affecting the investment process and the possibility of obtaining stable returns in the long term. The indicators of the development of stock indices of the London and European stock exchanges FTSE 100 and Euronext were studied. A comparative analysis of the value of shares of industrial enterprises was conducted for the period from 2015 to the beginning of 2023. It has been found that with the growth of the time period of investment, the risk and volatility between the maximum and the minimum rate of return on shares are reduced to a minimum. The aviation sector is the most attractive from the point of view of investment, as the maximum return during the first month of investment is 67.22%. The least attractive, but at the same time the least risky sector of the economy is the pharmaceutical industry, where during the first month of investment it is possible to get 19.36% profit from the invested capital.

Investment decision in crisis: The alternative view of escalation of commitment in determining investment performance

This research attempts to apply Image Theory to examine whether the tendency to continue the initial strategy or maintain the status quo known as escalation of commitment (EoC) from institutional investors leads to positive investment performance in unstable real environmental conditions with certain changing trends. In the equity market, investors are always faced with the option of maintaining their existing portfolio (initial strategy) or modifying it (generate emergent strategy) to increase assets as the goal. However, they have a tendency to EoC. Based on this situation, the authors conduct a quantitative study with covariance-based structural equation models (CB-SEM) approach one of the fund management industry in the Indonesian equity market during bearish conditions in the midst of the 2008 global economic crisis and bullish conditions during the crisis recovery as the background. This study shows that EoC is not always associated with more negative performance because it can result in more positive performance in high image compatibility state.

Alexander I. Pogrebetsky's Research Note on the State and Prospects of the Bodaybinsky District Amidst the Civil War

The research note published below is a fairly complete description of the economic status of the Bodaybinsky gold mining district. The note was prepared in the summer of 1919 in the conditions of political instability and economic crisis. Given the remoteness of the Bodaybinsky district and the lack of reliable information about its economic situation, this note was a valuable source for studying the affairs in this important for the economy of the Irkutsk Province area and the possible prospects for its restoration. Its task was to assess the economy and finances of the district in order to open a representative office of the Irkutsk branch of the Moscow People's Bank in it. This research note was not published and remained out of sight of researchers studying the history of the gold industry. Its author was Alexander I. Pogrebetsky, an active member of cooperative movement and an economist, later known as a researcher in the history of money circulation and finance in Siberia and the Far East.

Возрождение производства наградных знаков в после-революционной России (1918–1930-е годы)

This paper studies the organizational and logistics issues of the Soviet award system in the early period of its existence. It analyses administrative, production, technical, and personnel problems, which manifested themselves with the revival of award production during the Civil War and the first post-war decade. Further, the transformation of the attitude of the Soviet authorities to the award system and the resulting organizational measures and approaches are assessed. The specific features of the Soviet award system are highlighted in terms of its logistical and organizational support. The question of continuity in relation to the previous award system of Tsarist Russia is raised. The paper is based on the principles of historicism, objectivity and systematic approach. The methodological basis for the study is the historical-genetic method. The novelty of this research lies in rejecting the traditional descriptive approach to the awards and in identifying common problems and approaches of the Soviet government in matters of the material and organizational aspects of the award system, while indicating the organizational and production-technical difficulties of that period and ways to overcome them. In addition, the authors point out the dynamics in the organization of award production, use of raw materials, personnel policy, etc. An obvious problem of the period under study was the initial lack of Soviet authorities’ awareness of the value and functionality of the award system, followed by the correction of these approaches in the conditions of war and economic crisis. As a result, it took almost 20 years to formulate a coherent award policy. The authors suggest considering the Soviet award policy in close connection with the general processes of political, economic and social development, as an important element of the ideological system, and as an indicator of the changes that were taking place in the Soviet state and society.

Transformation of Social Responsibility Types in Small Business During COVID-19 Crisis

Year after year social responsibility becomes more popular among companies. Today nearly all companies introduce this concept. In spite of rather long evolution and transformation of this concept in Russia, it should be pointed out that by 2020 social responsibility began spreading among small and medium business, however the crisis had a serious impact on it. A lot of companies started fighting for survival and responsibility to others stepped back. The goal of the research is to study in what way the format and types of social activities changes when corona virus turned up. The article analyzes theoretical approaches to the notion ‘social responsibility’ and provides findings of the survey among representatives of small business trading on marketplaces. The research shows that entrepreneurs shifted their attention to the on-line format and started to distribute their priorities in a different way. The author highlighted the acute trends in conditions of economic crisis in Russia, identified lines in developing social responsibility and also pointed out problems, which have been focused on by entrepreneurs and those, which should be distinguished in the near future.

Web Based Social Assistance Distribution Monitoring System Using Waterfall Method

Currently, the Indonesian nation is in a state of economic crisis, many people are affected by the economic crisis. Social assistance is the provision of assistance in the form of money/goods from the government to underprivileged communities, which aims to improve people's welfare and meet the needs of the community in maintaining their lives during the current economic crisis. The village head is one of the government officials as well as officers from the social assistance distribution with the aim of minimizing the problem. A lot of assistance comes but is not evenly distributed to people in need, it is necessary to have a monitoring system for the distribution of social aid programs so that the assistance distributed remains on target and the quality of budget absorption is optimal. The monitoring process will be carried out by the village head directly to monitor the progress of the distribution of aid and submissions. Therefore, this research will build a web-based monitoring system for the distribution of social assistance. This social assistance distribution system in the form of a website, will contain data on recipients of the family hope program and community submission data. The design of this system uses Unified Modeling Language (UML) and the development of the system uses the Waterfall method which will test the system. With this system, it will help the Village Head in monitoring the distribution of aid and assist the community in submitting it.

Eksistensi UMKM dalam Aspek Jaminan/Agunan Kredit serta Perlindungan Hukumnya dan Kebijakan Pemerintah Dalam Rangka Melaksanakan Pembagunan Ekonomi Nasional

This article aims to find solutions for banking services in providing credit to Micro, Small and Medium Enterprises (MSMEs) in Indonesia which are focused on guarantees. The research method used is mixed methods or a combined method of quantitative and qualitative approaches, where both complement each other so that accurate data can be obtained. This article concludes that there are several internal policies from banks in providing credit either guaranteed or unsecured. The government and business actors are trying and jointly looking for a way out so that the country's economic condition remains stable. In the process, it was unexpected that the MSME sector was the only one that could survive even in a state of economic crisis. MSMEs are proven to make a positive contribution to the formation of the Gross Domestic Product (GDP) and also employment. With these facts, the Government through Financial Institutions such as Banking, cooperates in obtaining capital for MSME actors to develop their businesses through credit loans. The solution obtained for MSME actors is that banking institutions will provide credit loans with and or without collateral. For the security aspect for capital lending institutions in terms of unsecured loans, banking institutions will implement an insurance system that works with third parties, where there will be a premium at each stage of payment.