Publisher

NEWINERANEWINERA

Journal Journal La SocialeJournal La Sociale Abstract

This study aims to analyze the impact of credit policy on the financial performance of national banking companies in Indonesia, focusing on how credit policies influence factors such as profitability, financial stability, and liquidity. A quantitative approach is used in this research, with secondary data obtained from published financial reports of national banks, as well as data from the Financial Services Authority (OJK) and Bank Indonesia (BI). The data analysis technique employed is linear regression to examine the relationship between credit policy and financial ratios, including Non-Performing Loans (NPL), Return on Assets (ROA), Return on Equity (ROE), and the Operating Expenses to Operating Income ratio (BOPO) over the period 2015–2022. The results show that the credit policies implemented by banks have a significant impact on profitability, with an average ROA of 2.4% and ROE reaching 12.5%. Moreover, poor credit risk management was found to increase the NPL ratio to 3.2% and lower the banks financial performance. Meanwhile, a positive relationship between sound credit risk management and bank liquidity can be observed through the BOPO ratio, which stands at around 75%, indicating operational efficiency. Based on these findings, it is recommended that banks improve their credit risk policies to enhance their performance and financial stability.

Conclusion

Based on the research findings and discussion, it can be concluded that selective credit policies and sound risk management have a significant impact on the financial performance of banks.The implementation of more prudent credit policies has been proven to reduce the level of Non-Performing Loans (NPLs), increase Return on Assets (ROA) and Return on Equity (ROE), and enhance operational efficiency as reflected by lower Operating Expenses to Operating Income (BOPO) ratios.In addition, selective credit policies also contribute to improved liquidity and capital adequacy, which are essential for maintaining the stability and sustainability of bank operations.Overall, effective credit risk management is a key factor in enhancing bank profitability, financial stability, and operational efficiency.

Future Research

Berdasarkan temuan penelitian ini, beberapa saran penelitian lanjutan dapat diajukan. Pertama, penelitian selanjutnya dapat mengeksplorasi dampak penerapan teknologi kecerdasan buatan (AI) dalam manajemen risiko kredit terhadap kinerja keuangan bank, dengan fokus pada efisiensi dan akurasi dalam identifikasi potensi gagal bayar. Kedua, penting untuk meneliti lebih lanjut mengenai pengaruh kebijakan kredit syariah terhadap stabilitas keuangan bank-bank syariah di Indonesia, termasuk analisis komparatif dengan bank konvensional. Ketiga, penelitian dapat difokuskan pada studi kasus mengenai dampak perubahan regulasi terkait kredit terhadap perilaku kredit bank dan stabilitas sistem keuangan secara keseluruhan, dengan mempertimbangkan faktor-faktor eksternal seperti kondisi ekonomi global dan kebijakan moneter. Ketiga saran ini diharapkan dapat memberikan kontribusi signifikan dalam pengembangan strategi manajemen risiko kredit yang lebih efektif dan adaptif terhadap dinamika lingkungan bisnis yang terus berubah, sehingga dapat mendukung pertumbuhan ekonomi yang berkelanjutan dan stabilitas sistem keuangan.

References

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2. Evaluation of the Profitability Performance of Regional Development Banks Using Panel Regression: A Study... doi.org/10.56403/nejesh.v4i1.289Evaluation of the Profitability Performance of Regional Development Banks Using Panel Regression A Study doi 10 56403 nejesh v4i1 289
3. Evaluation of the Impact of Credit Policy on Financial Performance | Journal La Sociale. evaluation impact... doi.org/10.37899/journal-la-sociale.v6i6.2587Evaluation of the Impact of Credit Policy on Financial Performance Journal La Sociale evaluation impact doi 10 37899 journal la sociale v6i6 2587
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