Business Credit Research Articles

Models behaving badly: The limits of data-driven lending

Abstract Data-driven lending relies on the calibration of models using training periods. We find that this type of lending is not resilient in the presence of economic conditions that are materially different from those experienced during the training period. Using data from a small business fintech lending platform, we document that the small business credit supply collapsed during the COVID-19 crisis of March 2020 even though the demand for loans doubled relative to pre-pandemic levels. As the month progressed, most lenders significantly reduced or halted their lending activities, likely due to the heightened risk of model miscalibration under the new economic conditions.

Pengaruh Tenaga Kerja Terhadap Pembiayaan Kur Tahun 2019 di Pulau Jawa

This study aims to analyze the influence of labor on People's Business Credit (KUR) investment in Java Island in 2019. The analysis reveals that labor has a very small and insignificant impact on the amount of KUR investment. This is evidenced by a beta coefficient value of -0.003, which is close to zero, and a low correlation. In other words, the contribution of labor to the level of KUR investment is minimal. Although there is a weak positive relationship between labor and KUR investment, partial and part correlation tests indicate that the influence of labor is almost undetectable when other factors, such as KUR absorption, are considered. These findings suggest that labor is not a key variable in determining KUR investment levels in this region. This study provides valuable insights for policymakers to focus more on other significant factors that drive KUR investment growth, such as optimizing KUR fund absorption and improving access to capital for small and medium enterprises.

Knowing KUR Perception with an Islamic Financial Behavior Approach and Digital Financial Inclusion as an Intervening Variable in MSMEs Tasikmalaya, Indonesia

This research was to find out how Islamic financial behavior influences perceptions of KUR and also digital financial inclusion as an intervening variable. KUR (People's Business Credit) is a financing program provided to MSMEs as a form of support from the Indonesian government. KUR is credit given to MSMEs that are not yet bankable but have potential for working capital and investment purposes. However, the number of MSMEs using KUR is still below the Indonesian government's target. The research used a mixed method with a sample size of 150 respondents consisting of MSMEs in Tasikmalaya. The research results show that Islamic financial behavior has a significant influence on the perception of KUR, Islamic financial behavior has a significant influence on digital financial inclusion, and Islamic financial through digital financial inclusion has a significant influence on the perception of KUR in Tasikmalaya MSMEs. This shows that the government must be able to increase digital financial inclusion and have some Sharia-based KUR concepts

The Influence of Financial Literacy and Access to Financing on the Profitability of MSMEs in Gorontalo: An Empirical Analysis

This study aims to analyze the influence of financial literacy and access to financing, primarily through People's Business Credit, on the profitability of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. In the context of the significant development of MSMEs in various regions, good financial literacy is expected to increase financial inclusion and, in turn, support business growth. The method used in this study was a survey with a questionnaire distributed to 100 MSME actors in Bandar Lampung and Gorontalo. Data analysis used linear regression techniques to identify the relationship between variables. The study results indicate that high financial literacy and reasonable access to financing positively increase MSME's profitability. These findings emphasize the importance of increasing financial literacy and access to funding for MSMEs to encourage local economic growth. Policy recommendations are aimed at the government and financial institutions to improve financial education programs and facilitate access to financing for MSMEs.

Gaps in Access to People's Business Credit Financing for MSEs in Depok, West Java Experimental Design Approach

Gaps in Access to People's Business Credit Financing for MSEs in Depok, West Java Experimental Design Approach

Study on the Impact of Green Credit on the Business Performance of Commercial Banks

Nowadays, the problem of environmental pollution affects people's lives and inhibits the development of the national economy. The development of green credit plays a very important role in promoting the sustainable development of society, ecology and economy. In the long run, under the background of increasingly fierce international competition, the development of green credit by commercial banks is not only conducive to strengthening their own reputation and international competitiveness, but also conducive to improving their own business performance. However, in the short term, due to increased costs, environmental risks, incomplete supporting policies and other problems, green credit business may also have a negative impact on the business performance of commercial banks. Therefore, this paper analyzes the different impacts of green credit on commercial banks, and then discusses how to promote the improvement of commercial banks' operating performance from the perspective of green credit.

Economies of scale, efficiency and profitability of the convection industry in the city of Palembang

The development of the industrial sector is greatly influenced by economies of scale, efficiency and profitability. The small convection industrial sector always follows changes in clothing models and creativity that consumers like. This research aims to find out the value of economies of scale and measure the level of efficiency and profitability in small convection industries in the city of Palembang. The type of data used is primary data related to small convection industries in Palembang City. The research method used is qualitative and quantitative with analysis of the scale of production results using the Cobb-Douglas production function, efficiency and profitability. The research results show that the variables of labor (X1), capital (X2) and digital technology (dummy) simultaneously and partially have a positive and significant effect on the amount of production (Y). The economic scale of the small convection industry in Palembang City is in a condition where the return to scale is decreasing. The efficiency value is above average at 52 percent and below average at 48 percent. Agencies or authorities at the Palembang City level, including related parties, are expected to be more active in socializing People's Business Credit so as to facilitate capital and marketing of small convection industries, because based on the results of in-depth interviews with respondents, overall they already have business capital, and the government is expected to be able to distribute it. assistance with production support equipment to business actors thereby providing encouragement to improve production performance.

A New Model of Emergency Supply Management for Swift Transition from Peacetime to Emergency Considering Demand Urgency and Supplier Evaluation

In recent years, the increasing complexity of natural disasters has highlighted the limitations of existing emergency material assistance systems. To address these challenges, this study proposes a collaborative adaptation mechanism for “peacetime and emergency integration” and develops a supplier evaluation framework. The framework incorporates multi-dimensional indicators such as profit, business credit, regional advantages, and emergency capability. Using a DEMATEL-ANP-based model, supplier L2 is identified as the optimal choice with a weight of 0.285. A fuzzy comprehensive assessment approach is applied to classify emergency materials based on demand urgency, identifying drinking water, rescue tools, medical supplies, and other critical items as priority resources. The evaluation vectors for these materials range from 0.1540 to 0.9909. This study enhances emergency material management through improved information systems, a better control of critical processes, and a unified assurance strategy. It provides theoretical support and practical guidance for more scientific and standardized disaster management practices.

A study of the impact of urban business credit environment on environmental pollution.

Environmental pollution has become a global concern, so it is critical to find out the elements that influence it. Is the urban business credit environment influencing urban environmental conditions? The study takes the entropy method for calculating the environmental pollution index of 276 prefecture-level cities across China from 2010 to 2021, the CE1 index to describe the urban business credit environment, and a spatial Durbin model to empirically analyze the mechanism and transmission path of the urban business credit environment on environmental pollution. The findings demonstrate that: (1) there is an important positive spatial association between China's urban pollution index and urban business credit index, and that the level of spatial clustering of the two is increasing over time. (2) the urban business credit environment and environmental pollution have an inverted "U" shape relationship and a significant spatial spillover effect, which means that once a certain threshold is reached, improving the urban business credit environment reduces environmental pollution in local and neighboring areas. (3) The influence of the urban business credit environment on environmental deterioration varies by region. The extra heterogeneity test results for the different regions show that the relationship between business credit level and environmental pollution is consistent with the overall situation in the eastern and western regions, the opposite effect was observed in the central region. (4) Changes in the urban business credit environment have an indirect impact on environmental conditions due to the amount of regional financial development and technological innovation potential. To reduce pollution in the region, prefectural-level cities must strengthen the construction of urban business credit systems, strive to create a favorable business credit environment, strengthen the spatial spillover effect, and guide the resource elements of business credit planning to flow into the central and western parts of China reasonably. The study's findings have significant practical implications for modifying the government's development strategy and improving the urban environment.

Analisis Modal Kredit Usaha Rakyat dalam Meningkatkan Perkembangan UMKM dI Kota Tengah: Studi Kasus UMKM Dwi Laundry dan Toko Olfan

This study aims to determine the ideal working capital for MSMEs in the Central City District. The research used a quantitative approach with descriptive methods. The sample in this study was two MSMEs where data collection used observation, interviews and documentation. The data analysis technique uses debt ratio analysis, maximum loan analysis and calculation analysis of business capital sources from loans. The results showed that People’s Business Credit capital has a positive impact on improving the income and operations of MSMEs. Dwi Laundry and Toko Olfan recorded increased revenues thanks to the use of People's Business Credit capital, which allowed for increased operational capacity and improved financial performance from year to year. However, the research also found that MSME owners tend to use business income for personal purposes, which leads to confusion between personal and business finances and hinders strategic decision-making.

IMPLEMENTATION OF REGULATION OF THE COORDINATING MINISTER FOR ECONOMIC AFFAIRS NUMBER 1 OF 2022 IN DISTRIBUTING COLLATERAL-FREE PEOPLE'S BUSINESS CREDIT TO CUSTOMERS IN BENGKULU CITY

To accelerate the National Economic Recovery (PEN), one of them is assistance in distributing credit for Micro, Small, and Medium Enterprises (MSMEs); for this reason, the government has issued a People's Business Credit (KUR) regulation with a loan ceiling twice as high as previously IDR 10 million to IDR 50 million, IDR 50 to 100 million and IDR 100 million to IDR 500 million. as well as KUR loans for unmarried people with a maximum loan ceiling of IDR 10 million. Based on PERMENKO No. 1, the year 2022, the government issued a policy, namely, the distribution of People's Business Credit (KUR) loan assistance for Micro, Small, and Medium Enterprises (MSMEs), that the loan requirements are carried out without collateral. However, in its implementation in the field, the government's policy turns out that the creditor/bank still requires that the People's Business Credit (KUR) loan carried out by MSMEs still use additional collateral, including a loan of IDR 10 million, at least one motorbike BPKB. For IDR 50 million, the collateral is one car, BPKB, or land/house certificate. Only then, after the issuance of PERMENKO No. 1 of 2023, did the Bank completely exempt KUR recipients from the additional collateral requirements in Bengkulu City. Keywords: Collateral Implementation, Banks, MSMEs

Analisis Tingkat Kesiapan Sumberdaya Masyarakat Dan Pengaruh Produk Kredit Usaha Rakyat (KUR) Terhadap Perkembangan Usaha Mikro Kecil Menengah (UMKM)

The development of the sharia economy in Indonesia continues to show a positive trend, with Indonesia ranked third in the Global Islamic Economy Indicator (GIEI) 2023. In Lampung Province, economic growth in the first quarter of 2023 of 4.96% also encouraged the strengthening of the small business sector, including MSMEs. This study aims to analyze the readiness of the community in accessing capital, as well as the impact of the People's Business Credit (KUR) product of Bank Syariah Indonesia on the growth of MSMEs. The study used a qualitative descriptive approach with a survey of 70 KUR customers of Bank Syariah Indonesia at the Bandar Lampung Tanjung Karang KCP for the period 2021–2023. The snowball sampling technique was applied in data collection, which was then analyzed using multiple regression with SPSS Version 22. The results of the study showed that community readiness had a significant influence on MSME growth, with increasing community readiness increasing the capacity of MSME businesses. In addition, the KUR product of Bank Syariah Indonesia has proven to be significant in supporting business development and access to capital for MSME actors.

The Impact of Digital Inclusive Finance on Residents’ Cultural Consumption in China: An Urban-Rural Difference Perspective

This paper uses panel data from the 2014–2020 China Family Panel Studies (CFPS) to study the impact of digital inclusive finance (DIF) on the cultural consumption of urban and rural residents using two-way fixed effects. The results show that DIF can promote the growth of cultural consumption of urban and rural residents, and the promotion effect is greater for rural residents. Mechanism analysis shows that DIF increases the cultural consumption of urban and rural residents mainly through easing liquidity constraints, reducing precautionary savings, and increasing payment convenience. Moreover, reducing precautionary savings has a greater impact on the cultural consumption of urban residents, while the other two mechanisms have a greater impact on rural residents. In the heterogeneity analysis, credit business and some indicators reflecting the convenience of payment have a greater impact on rural residents. The insurance business has a greater impact on urban residents. This paper provides policy references for the development of DIF and the enhancement of residents’ cultural consumption.

Main Trends in the Chinese Banks` Activities in Russia at the Beginning of the 14th Five-Year Plan

The article analyzes the Chinese banks` activities in Russia in the first years of the 14th Five-Year Plan (2021–2025). Four subsidiaries of state-owned commercial banks (ICBC, Bank of China, Agricultural Bank of China, China Construction Bank), and two representative offices of China Development Bank and Export-Import Bank of China respectively, operate in the Russian market. The banks provide a full range of banking products and services primarily to companies doing business with China, including lending, accounts opening and maintaining, foreign exchange and financial transactions, and letters of credit business. The author notes a significant increase of Chinese four subsidiaries` assets during 2022–2023. Regarding the liabilities, there was also a growth in the category "amounts due to credit organizations" (other banks` LORO accounts` transactions, interbank operations), which is associated with the necessity of an increased number of client payments due the increasing volume of Sino-Russo trade turnover and restrictions on settlements on USD and EUR. These trends have contributed to the growth of both the client base and profits of Chinese subsidiaries that charge commissions for account maintenance, settlements, and, moreover, had a positive impact on the increase in the volume of settlements in national currencies. The article analyzes the structure of settlements under foreign trade contracts and draws a conclusion about the growing predominance of national currencies. The author notes that in general, Chinese financial institutions pursue a cautious credit policy, focusing on maintaining stability and leveling various risks.

Peningkatan Taraf Hidup Masyarakat UMKM Rambak Melalui Sosialisasi Pemanfaatan Kredit Usaha Rakyat di Desa Bangsal Kabupaten Mojokerto

The goal of the socialization program for People's Business Credit (KUR) use in Bangsal Village, Mojokerto Regency, is to enhance the community's knowledge, perspectives, and practices about KUR for MSMEs. Prior to and during the socializing activity, questionnaires and in-depth interviews were used to gather data for this qualitative research. The study's findings demonstrated a decline in the usage of KUR for non-productive consumption and an increase in community awareness of the advantages and prerequisites for using KUR. The community is positively encouraged to use KUR for their business requirements as a result of this socialization program. Increased stakeholder participation, improved instructional materials, wider outreach, and ongoing monitoring and evaluation are all required to improve the efficacy of KUR socialization. In order to promote regional economic growth and enhance community welfare overall, it is anticipated that the findings of this research would significantly increase access to and advantages of KUR.

The Effect Of Internal Audit Implementation And Risk Management On Lending Policies People's Business In The Covid-19 Period At PT. Bank Sumut Centre Medan

This study aims to examine the effect of the implemention of internal audit and risk management on the policy of granting people’s business loans in the covid-19 period. In this study using primary data in the form of distributing questionnaires conducted at PT Bank Sumut Pusat Medan, the sampling technique used was purposive sampling with data collection techniques using a questionnaire method. The analysis used in this study uses the methods of validity, reability, data normality, classical assumptions, coefficient of determination t test and f test. The results of this study indicate that internal audit has a partial effect on the policy of granting people’s business loans at covid-19 with a tcount value of 7.472 at a significant level 0f 0.003. Risk management partially affects the policy of granting people’s business credit during covid- 19 with a tcount value of 7.432 with a significant level of 0.000. Internal audit and risk management simultaneously affect the policy of granting people’s business loans during covid-19 with a fcount value of 92.717 with a significant value of In addition, the adjusted R square value of 0.859 means that internal audit (X1) and risk management (X2) together affect the policy of granting people’s business loan during covid-19 by 85.9% while the remaining 14.1% is influenced by other variables outside of this study

SPATIAL DISTRIBUTION PATTERNS OF POVERTY AND ECONOMIC GROWTH FOR ACHIEVING SUSTAINABLE DEVELOPMENT TARGETS IN EAST JAVA PROVINCE

<p>Poverty and economic growth are still indicators of a country's success in managing its resources and population. Countries in the world have agreed to make poverty alleviation the first sustainable development priority. This article aims to look at the spatial distribution pattern of poverty and regional characteristics, as well as the pattern and structure of economic growth in city districts in East Java Province. The methods used include spatial autocorrelation analysis, regional financial capability analysis, Klassen typology, and regional characteristics analysis. Based on the pattern of poverty distribution for the period 2014 – 2023, poverty in East Java Province tends to change with the dominance of class 2 poverty. Sampang, Pamekasan and Sumenep regencies tend to experience a stable poverty pattern in Class 3. Pockets of poverty are clustered on Madura Island with a percentage poverty is above 18% and the characteristics of a low Human Development Index (HDI) value, low number of (people’s business credit (KUR) recipients, inadequate sanitation, not very high economic growth, and frequent flood disasters. As many as 65.78% of areas in East Java Province have high financial capacity, so that policy direction can be focused on poverty pocket areas with a high percentage of poverty, through increasing HDI, optimizing KUR, fulfilling adequate sanitation, increasing disaster response, and developing leading sectors. for increasing Original Regional Income (PAD) and economic growth.</p>

The Financial Performance of Ligao Association of City Employees Multi-Purpose Cooperative (LACE-MPC) Credit Business for Calendar Years 2017-2021

This study assessed the financial performance of the Ligao Association of City Employees Multi-Purpose Cooperative (LACE-MPC) credit business from 2017 to 2021, addressing a significant gap in the literature regarding the operational dynamics of multi-purpose cooperatives in the Bicol region. Utilizing a descriptive research design, the study conducted interviews and employed survey questionnaires and documentary analysis to gather data from 113 regular and 85 associate members. The results revealed a commendable financial standing characterized by a low non-performing loan ratio and improved operational efficiency, as indicated by key financial indicators such as portfolio quality and efficiency ratios. However, the study also identified significant policy issues , including unclear loan terms and challenges in credit assessment, which hindered member satisfaction and operational effectiveness.The implications of these findings extend beyond LACE-MPC, highlighting the need for enhanced governance and operational transparency within cooperatives to foster member trust and engagement. The study underscores the importance of clear communication regarding loan terms and the necessity of robust credit assessment processes to improve member experiences. Furthermore, the research opens avenues for future studies focused on enhancing financial literacy among cooperative members and exploring the potential for establishing educational initiatives, such as a review center for civil service examinations. Overall, this research contributes to the understanding of cooperative financial management and offers insights that can enhance the sustainability of LACE-MPC's credit services, ultimately improving the socio-economic status of its members and reinforcing the role of cooperatives in community development.

The Impact of the People's Business Credit (KUR) Programme on Entrepreneurship Development and Economic Growth in Indonesia

The People’s Business Credit (Kredit Usaha Rakyat, KUR) program has been a significant government initiative in Indonesia, aimed at promoting entrepreneurship and stimulating economic growth, particularly among micro, small, and medium enterprises (MSMEs). This study examines the impact of the KUR program on entrepreneurship development and economic growth, using a quantitative analysis based on a sample of 100 MSME entrepreneurs who have received KUR loans. Data was collected through a survey utilizing a Likert scale (1-5) and analyzed using SPSS version 25. The results show that KUR funding positively impacts business expansion, innovation, and profitability, with a significant correlation between program participation and improvements in entrepreneurship development. Furthermore, the study highlights the program’s contribution to local economic growth through job creation and increased regional economic activity. The findings indicate that the KUR program is effective in fostering entrepreneurship, particularly in rural areas, and plays a crucial role in stimulating economic growth at the local level. The study provides valuable insights for policymakers to improve the program and further support MSMEs in Indonesia.

Influence of financial literacy, financial inclusion, and people's business credit financing (KUR) on the profitability of MSMEs among PT Pegadaian City Palembang customers

Purpose: This research is conducted to determine the effect of financial literacy, financial inclusion, and the People's Business Credit (KUR) financing on the profitability of MSMEs among customers of Pegadaian in Palembang City. Research Methodology: The sample in this study consists of 100 customers of PT Pegadaian in Palembang City, selected through purpose sampling. Data was collected using a questionnaire distributed to all customers, and the data was then processed using the Statistical Package for the Social Sciences (SPSS). Results: The research results show that financial literacy has no effect on the profitability of MSMEs, financial inclusion has a negative effect on the profitability of MSMEs, and KUR (People's Business Credit) financing has a positive effect on the profitability of MSMEs for Pegadaian customers in Palembang City. Limitations: This research is limited to analyzing the influence on MSME profitability with independent variables in the form of financial literacy, financial inclusion, and KUR financing. This research is limited to PT Pegadaian customers in Palembang City only. Contribution: This research can contribute to providing references for further research activities, especially for researchers interested in conducting more in-depth studies in this field.