Credit Relaxation Policy on Rural Credit Bank in the Pandemic Period

  • Sulihanto Sulihanto Universitas Kristen Satya Wacana, Salatiga, Indonesia
  • Apriani Dorkas Rambu Atahau Universitas Kristen Satya Wacana, Salatiga, Indonesia
  • Ronny Prabowo Universitas Kristen Satya Wacana, Salatiga, Indonesia
  • Hari Sunarto Universitas Kristen Satya Wacana, Salatiga, Indonesia
Keywords: Rural Bank, liquidity, profitability, credit relaxation


when the COVID-19 outbreak, Indonesian banks' financial performance has declined, particularly when the lockdown policy was put into place. banking operations, with a focus on rural banks (BPR), which were previously mostly carried out face-to-face, had to move online. BPRs in Indonesia, most of which are located in areas where internet signals are difficult to reach, experience problems in communicating with customers. The Indonesian government intervened in banking operations by issuing a Credit Relaxation policy which could be disseminated by all banks to their customers. Thus, the purpose of this study is to determine and test experimentally, using data from 259 BPRs in Central Java, whether the Indonesian government's credit relaxation policy can improve the liquidity and profitability of BPRs' financial performance. This research uses NPL as variabel independent and NIM, ROA, and Cash Ratio as variabel dependent. The research results show that the credit relaxation policy can play a role in increasing liquidity and profitability in a more positive direction.


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How to Cite
Sulihanto, S., Apriani Dorkas Rambu Atahau, Ronny Prabowo, & Hari Sunarto. (2024). Credit Relaxation Policy on Rural Credit Bank in the Pandemic Period. Jurnal Scientia, 13(02), 1503-1511. Retrieved from