Analysis of the Influence of Credit Policy on Micro Credit Demand to the State-Owned Banks in North Sumatera (An Empirical Study in PT Bank Rakyat Indonesia (Persero), Medan Thamrin Branch Office)
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 12
Abstract
This research is motivated by many factors that influence the demand for credit by the business world, especially the micro sector, including credit policies at a bank. These credit policies include loan interest rates, perceptions of the operational standards of credit procedures and bank credit services. The research objective was to analyze the effect of lending rates, perceptions of credit operational standards (SOP), and credit services on the demand for microcredit and to find out the most dominant variables affecting the number of micro credit requests at PT Bank Rakyat Indonesia (Persero) Tbk Medan Thamrin Branch. This study uses an empirical study approach supported by surveys. Data was collected using a questionnaire and documentation study. The sample in this study used saturated samples from a total population of 202 customers or respondents. Testing the hypothesis using multiple linear regression analysis through the F test and t test at a confidence level of 95% (α = 0.05). The test results with the F test show the variable credit policy consisting of loan interest rates, perceptions of operational standard procedures and bank credit services have a positive and significant effect on the demand for microcredit at PT Bank Rakyat Indonesia (Persero) Tbk Medan Thamrin Branch. Partially credit services and standard operating procedures have a positive and significant effect on the demand for microcredit at the Medan Thamrin Branch of Bank Rakyat Indonesia (Persero) Tbk, while credit interest rates have a negative and significant effect on demand for microcredit. Simultaneously the results of this study are, credit policies which consist of: credit interest rates, perceptions of credit operational standards, and bank credit services have a positive and significant influence on the demand for micro credit at the Medan Thamrin Branch of PT Bank Rakyat Indonesia (Persero) Tbk.
Authors and Affiliations
Jontar Gunawan Siburian, Amrin Fauzi, Endang S. Rini
Keywords
Related Articles
- EP ID EP429183
- DOI 10.9790/487X-2012064053.
- Views 50
- Downloads 0
Empirical Study On Individual Investors’ Inclination Towards Equity Shares In Varanasi District Of U.P.
Indian Capital market has grown remarkably during the recent years in tune with the global financial markets. Two types of capital viz., Equity and Debt are basically raised by Indian corporates. Equity capital forms par...
Role of Celebrities in Creation of Brand Image
In the present era of information explosion and media influence, the advertisement plays an important role for brands to create a better brand image in the consumers’ mind. Celebrities play a very important role in creat...
Employment and Income Generation in Brick Industries: A Study in Rangia and Hajo Block of Kamrup(R) District of Assam
Brick making industry is one of the important industries in the unorganised sector mainly confined to rural and semi urban areas. The brick kiln sector is next to the agricultural sector in terms of employment to rural a...
Travelling Salesman Problem (TSP) with Mixed Constraints and Multiple Job Facilities at each station
In this paper, mixed constraints (i.e., precedence and fixed position constraints) are considered in the usual travelling salesman problem with multiple job facilities at each station. The two constraints, i.e., preceden...
Capital Budgeting Decisions And Profitability In Manufacturing Firms
The study set to investigate the relationship between capital budgeting decisions and profitability in manufacturing firms. Capital budgeting particularly addressed five areas of the study that included capital budgeting...