Unpacking Profit Stability: The Strategic Role of Credit Quality During COVID-19
Abstract
Background
This study explores how Bank ABC managed increasing credit risk during the COVID-19 pandemic while maintaining credit quality and profitability. The research focuses on understanding the implementation of credit restructuring strategies, the roles of key stakeholders, and the development of an effective credit quality management model under crisis conditions.
Method
This study employed a qualitative research approach to obtain an in-depth understanding of credit restructuring practices at Bank ABC. Data were analyzed through organizational processes, stakeholder roles, and strategic responses related to credit quality management during the pandemic period.
Results
The findings indicate that credit restructuring was implemented comprehensively through the application of prudential banking principles, debtor prioritization, rigorous verification procedures, and flexible repayment schemes. Strong collaboration among the Middle Bucket, Collection & Recovery, and Capital Ebas & Asset Sales units significantly contributed to reducing non-performing loan (NPL) risk and maintaining capital stability. Furthermore, the implementation of early warning systems, collection negotiations, asset sales, and digitalized collection processes improved operational efficiency and supported organizational profitability during the crisis.
Conclusion
The study concludes that the success of Bank ABC in managing credit risk during the COVID-19 pandemic was driven by adaptive credit restructuring strategies, strong cross-functional collaboration, and effective risk mitigation practices. These findings highlight the importance of integrated credit quality management and organizational flexibility in sustaining financial stability and profitability during periods of economic uncertainty.
References
Alvi, J., Arif, I., & Nizam, K. (2024). Advancing financial resilience: A systematic review of default prediction models and future directions in credit risk management. Heliyon, 10(21). https://doi.org/10.1016/j.heliyon.2024.e39770
Aziz, A., & Maulida, S. (2024). Bank Credit Growth in Indonesia During The COVID-19 Pandemic and Its Regulations. Journal of Central Banking, Law, and Institutions, 3(1), 177–202.
Basmar, E., Campbell, C. M., & Basmar, E. (2022). Bank Credit in Financial Cycle during COVID-19 Pandemic: Dilemma from Indonesia. Shirkah : Journal of Economics and Business, 7(3), 253–266.
Bringham, E. F., & Houston, J. F. (2022). Fundamentals Of Financial Management. Cengage Learning. https://doi.org/10.59646/ffm/152
Chai, Z., Sadiq, M. N., Ali, N., Malik, M., & Hamid, S. A. R. (2022). Bank Specific Risks and Financial Stability Nexus: Evidence From Pakistan. Frontiers in Psychology, 13(June), 1–6. https://doi.org/10.3389/fpsyg.2022.909141
Cresswell, J. W. (2016). Research design: Pendekatan Kualitatif, Kuantitatif, dan Mixed (Edisi Ketiga). Pustaka Pelajar.
Felle, A. R., & Santioso, L. (2024). The Effect of Credit Risk and Bank-Specific Factors on Financial Performance of Banks Listed in Indonesia Stock Exchange (IDX). International Journal of Application on Economics and Business (IJAEB), 2(2), 3392–3403.
Hermawan, S., & Hariyanto, W. (2022). Buku Ajar Metode Penelitian Bisnis (Kuantitatif dan Kualitatif). Umsida Press.
Jirwanto, H., Aqsa, M. A., Agusven, T., Herman, H., & Sulfitri, V. (2024). Manajemen Keuangan. Azka Pustaka.
Khalifaturofi’ah, S. O., Listyarti, I., Poerwanti, R., & Sihotang, E. T. (2024). Bank Profitability in Indonesia During COVID-19 Outbreak. JBMP (Jurnal Bisnis, Manajemen Dan Perbankan), 10(1), 29–41. https://doi.org/10.21070/jbmp.v10i1.1779
Li, X., & Tian, X. (2022). Research on SMEs ’ Reputation Mechanism and Default Risk Based on Investors ’ Financial Participation. Sustainability, 14.
Pakaya, I. F., Amaliah, T. H., & Badu, R. S. (2023). Analisis Restrukturisasi Untuk Kredit Bermasalah pada Debitur KUR. Jambura Accounting Review, 4(2), 347–361.
Pavita, B. P., & Mukhlis, I. (2022). Analisis Restrukturisasi Kredit Perbankan Untuk Meminimalisasi Kredit Bermasalah Saat Masa Pandemi Covid-19. EKONOMIKAWAN: Jurnal Ilmu Ekonomi Dan Studi Pembangunan, 22(2), 32–42.
Ramadhan, I., & Wijaya, E. (2023). Analisis Kinerja Keuangan Perbankan Studi Kasus pada Bank Pembangunan Daerah Sebelum dan pada Saat Pandemi COVID-19. Jurnal Ekonomi, Manajemen Dan Perbankan (Journal of Economics, Management and Banking), 9(1), 49–66. https://doi.org/10.35384/jemp.v9i1.381
Ramadhani, G. S., & Putra, M. H. I. (2025). Pengaruh JUB, BI-Rate Dan Covid-19 Terhadap Permintaan Kredit Bank di Indonesia. Moneter: Jurnal Ekonomi Dan Keuangan, 3(4), 72–84.
Riza, M., & Mawardi, W. (2024). The Impact of the COVID-19 Pandemic on Banking Liquidity: A Case Study of Various Bank Types in Indonesia. Journal of Finance and Islamic Banking, 7(1).
Sakti, L. P., Sulistyaningsih, T., & Sulistyowati, T. (2021). COVID-19 Perubahan sosial masyarakat pasca pandemi Covid-19 di Kota Malang. Jurnal Administrasi Dan Kebijakan Publik, 6(2), 217–230. https://doi.org/10.25077/jakp.6.2.217-230.2021
Sintia, Choiriyah, & Meriyati. (2022). Analisis Kebijakan Restrukturisasi Dan Non Restrukturisasi Nasabah Terhadap Produk Pembiayaan Bermasalah Pada Masa Pandemi Covid-19 Di Bank Bri Syariah KC A Rivai Palembang. Jurnal Ilmiah Mahasiswa Perbankan Syariah Sekolah Tinggi Ekonomi Dan Bisnis Syariah, 2(2), 395–410.
Supriyanto, Y., Martadinata, I. P. H., Adipta, M., Rozali, M., Idris, A., Nurfauzi, Y., Fahmi, M., Sundari, Adria, Mamuki, E., & Supriadi. (2023). Dasar-Dasar Manajemen Keuangan. Sanabil.
Syafitri, E. D., & Khalifaturofi’ah, S. O. (2023). Dampak Pandemi Covid-19 terhadap Kinerja KeuanganPerusahaan Manufaktur yang Terdaftar di BEI. Journal of Business & Banking, 13(1), 33–53. https://doi.org/10.14414/jbb.v13i1.3734
Wahyuni, I. (2024). The Impact of Covid-19 on the Financial Performance of Conventional Banking in Indonesia. The Accounting Journal of BINANIAGA, 8(2), 163–178. https://doi.org/10.33062/ajb.v8i02.40
Yue, P., Korkmaz, A. G., Yin, Z., & Zhou, H. (2022). The rise of digital finance: Financial inclusion or debt trap? Finance Research Letters, 47(April 2020), 102604. https://doi.org/10.1016/j.frl.2021.102604
Zhang, C. (2025). How Does Enterprise Digital Transformation Affect the Cost of Debt Financing? Based on the Perspective of Customer Concentration Risk. International Review of Economics and Finance, 103, 104426. https://doi.org/10.1016/j.iref.2025.104426
Copyright (c) 2026 Cenda Bergiana, Sumiati Sumiati, Himmiyatul Amanah Jiwa Juwita
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
The authors who publish in the journal agree to the following terms:
- The authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- The authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- The authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
- The authors warrant that the article is original, written by stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third-party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
Jurnal Ekonomi dan Bisnis Manajemen Syariah (SEMB-J), Yayasan Darussalam Bengkulu is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Based on a work at https://siducat.org/index.php/sembj/.
