Credit Risk Management Strategies in The Banking Industry Before and During the Covid-19 Pandemic
Andra Andana-Rahmat Aryo Baskoro

Faculty of Economics and Business Universitas Indonesia, Magister of Management

Abstract

In the banking industry, assessing credit risk is critical. This study looks at the components that lead to determining credit risk measurement. Those issues stem from internal and external sources, including the debtors actions and the economic collapse brought on by the Covid 19 pandemic. The research begins by examining the various economic conditions that existed prior to and during the Covid 19 outbreak. Second, it will look at how the Covid 19 pandemic affected banking credit activity. Third, it will also look at banking performance indicators associated with credit risk, such as capital, bank size, net interest margin, return on asset, return on equity and credit growth. The element is then examined to see if it has any differences or influences that significantly impact credit risk before and during the Covid 19 pandemic. Furthermore, determining its relevance is an important aspect of this work. This research employs a quantitative strategy based on multiple regression analysis as well as backward model and a descriptive approach to fit an evaluation method with a particular condition. It is predicted that there will be differences in the bank performance indicator related to credit risk before Covid 19 and during Covid 19. In this case, it is expected that bank management can prepare a risk mitigation strategy based on these results.

Keywords: Bank- Bank Performance Indicator- Covid 19- Factors of Credit Risk- Credit Risk

Topic: Economics