ISSN: 2225-8329
Open access
The Covid-19 pandemic has triggered banks and financial institutions to maintain solid credit ratings and reserve levels to mitigate the consequences of economic downturns. Banks have been collaborating with the regulator to ensure that affected borrowers and staff continue to receive support in navigating the challenging economic climate. This study investigates the influence of loan moratorium, staff advance, and bonus incentives given by the bank to their staff; on the bank's credit risk during Covid-19. This study employed a quantitative method to achieve the objectives of the research. A set of questionnaires was distributed to the executive to senior executive-level staff at the bank's headquarters office in Kuala Lumpur. Out of 200 surveys distributed, 136 returned for further analysis. Multiple Linear Regression analysis was employed to test the data. This study revealed that loan moratoriums, staff advances, and bonus incentives impacted the bank's credit risk. This outcome demonstrates the bank's credit risk was affected during the Covid-19 pandemic. The findings and recommendations of this study will assist bank credit analysts and top management in evaluating financial incentives that affect bank credit risk. Further research should include other factors influencing the bank's credit risk. Hence, it may adequately address the risks and anticipated outcomes affecting the financial service.
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In-Text Citation: (Bahrin et al., 2022)
To Cite this Article: Bahrin, A., Aziz, N., & Jasni, N. S. (2022). Factors Affecting Credit Risk of The Bank During Covid-19 Pandemic. International Journal of Academic Research in Accounting Finance and Management Sciences, 12(3), 514–531.
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