ANALYSIS OF THE IMPACT OF CREDIT RESTRUCTURING POLICY DURING COVID-19 ON INDONESIAN COMMERCIAL BANKS’ CREDIT RISK
This research is a study of credit activities at commercial banks in Indonesia. The main objective of quantitative research is to examine the influence of Credit Restructuring Policy on Credit Risk and Compliance to Regulation of commercial banks in Indonesia. This research approach is a confirmative quantitative approach, with analysis techniques using the SEM method which is processed using WarpPLS 6.0. The novelty of this research is the credit restructuring policy variable that was issued during the Covid-19 Pandemic, the role of Internal Control as moderating the influence of the Credit Risk Management Process on Credit Risk, and the measurement of credit risk which is based on respondents' perceptions, not based on financial ratios. Research data was obtained through a questionnaire regarding the perceptions of one hundred respondents of commercial bank officials regarding credit activities, internal control and credit risk. Research findings show that the Credit Restructuring Policy has a positive effect on the Credit Risk Management Process but does not have a direct effect on Credit Risk. Compliance to Regulation has no effect on the Credit Risk Management Process and Credit Risk. The Credit Risk Management Process influences Credit Risk. Meanwhile, Internal Control weakens the relationship between the Credit Risk Management Process and Credit Risk.
Credit Risk Management, Compliance to Regulation, Credit Restructuring Policy, Internal Control, Credit Risk, Covid-19 Pandemic