Good Corporate Governance (Gcg) Integration and Credit Restructuring and Its Impact on Conventional BPR Business Performance in Sidoarjo

TLDR: In this paper, the authors examined the effects of the integration of Good Corporate Governance (GCG) and credit restructuring on the business performance of Conventional Banks in Sidoarjo.

Abstract: Conventional banks are banking financial institutions that function as intermediary institutions in the economic field that bring various impacts in the smooth implementation of the development of the city of Sidoarjo. Good governance and lending are one of BPR's main activities as an intermediary institution. Hot mud overflow. Lapindo in Sidoarjo, East Java, which has occurred since May 29, 2006 has given the banking worl especially ConventionalBanks in Sidoarjo, namely the inability to pay customers due to loss of jobs and livelihoods resulting in bad loans and credit restructuring processes. For the existence and continuity of business as well as enhancing the competitiveness of Conventional Banks, good corporate governance (GCG) integration and credit restructuring are carried out. The purpose of this study is to examine the effects of the integration of Good Corporate Governance (GCG) and credit restructuring on the business performance of Conventional Banks in Sidoarjo. This research is an explanatory research using 72 respondents, namely commissioners, main directors, compliance directors and managers of conventional banks in Sidoarjo. The variables used in this study are Managerial Ownership, Board of Commissioners, Audit Committee, Credit Responding, Credit Reconditioning, Credit Restructuring and Business Performance. The analytical tool used is the PLS Structural Equation Modeling (SEM) approach. The reason is because all variables in this study cannot be measured directly or, latent variables. The results of this study indicate that the integration of Good Corporate Governance and Credit Restructuring can be done either partially or simultaneously and is proven to have an effect on the business performance of Conventional Banks in Sidoarjo. Extensive and prolonged negative impacts until 2019, including