The Effectiveness of MSME Credit Distribution in Enhancing Financial Literacy Among MSME Actors : Evidence from Conventional Commercial Banks in Jambi Province

Iskandar Sam ; Ratih Kusumastuti ; Widya Sari Wendry
International Journal of Management Research and E... 📅 2023 Vol 1, No 4 🔗 DOI: 10.54066/ijmre-itb.v1i4.3526
Abstract
Limited access to bank credit remains a major obstacle for Micro, Small, and Medium Enterprises (MSMEs), primarily due to their inability to meet procedural requirements and provide adequate collateral. In response, Law No. 1 of 2016 concerning Guarantees emphasizes the need to support the business sector, especially MSMEs, in overcoming financing constraints. This study aims to examine the effect of the Capital Adequacy Ratio (CAR), Net Interest Margin (NIM), and Bank Size on the effectiveness of MSME credit distribution by Conventional Commercial Banks in Jambi Province during the 2018–2020 period. This research employs a quantitative approach using secondary data obtained from financial statements. The independent variables include CAR, NIM, and Bank Size, while the dependent variable is the percentage of MSME loan distribution. Data were analyzed using descriptive statistics and inferential statistical methods through Structural Equation Modeling (SEM) with the Partial Least Square (PLS) approach. The population comprises Conventional Commercial Banks operating in Jambi Province, selected using a purposive sampling method. The results indicate that both partially and simultaneously, CAR, NIM, and Bank Size significantly influence the effectiveness of MSME loan distribution. These findings highlight the importance of banking institutions in enhancing inclusive financial intermediation through financial literacy initiatives and responsive financing strategies tailored to the needs of MSMEs.
Keywords
Bank Size; Financial Literacy; MSME Actors; MSME Credit
How to Cite

Iskandar Sam, et al. (2023). The Effectiveness of MSME Credit Distribution in Enhancing Financial Literacy Among MSME Actors : Evidence from Conventional Commercial Banks in Jambi Province. International Journal of Management Research and Economics, 1(4). https://doi.org/10.54066/ijmre-itb.v1i4.3526

Iskandar Sam; Ratih Kusumastuti; Widya Sari Wendry, "The Effectiveness of MSME Credit Distribution in Enhancing Financial Literacy Among MSME Actors : Evidence from Conventional Commercial Banks in Jambi Province," International Journal of Management Research and Economics, vol. 1, no. 4, 2023.

Iskandar Sam; Ratih Kusumastuti; Widya Sari Wendry. "The Effectiveness of MSME Credit Distribution in Enhancing Financial Literacy Among MSME Actors : Evidence from Conventional Commercial Banks in Jambi Province." International Journal of Management Research and Economics, vol. 1, no. 4, 2023.

Iskandar Sam; Ratih Kusumastuti; Widya Sari Wendry. "The Effectiveness of MSME Credit Distribution in Enhancing Financial Literacy Among MSME Actors : Evidence from Conventional Commercial Banks in Jambi Province." International Journal of Management Research and Economics 1, no. 4 (2023).

Iskandar Sam, et al. (2023) 'The Effectiveness of MSME Credit Distribution in Enhancing Financial Literacy Among MSME Actors : Evidence from Conventional Commercial Banks in Jambi Province', International Journal of Management Research and Economics, 1(4). doi: 10.54066/ijmre-itb.v1i4.3526.

Iskandar Sam; Ratih Kusumastuti; Widya Sari Wendry. The Effectiveness of MSME Credit Distribution in Enhancing Financial Literacy Among MSME Actors : Evidence from Conventional Commercial Banks in Jambi Province. International Journal of Management Research and Economics. 2023;1(4).

Artikel Terkait

The Influence Of K-Pop Artist As Brand Ambassador On Affecting Purchasing Decision and Brand Loyalty (A Study Of Scarlett Whitening’s Consumers in Indonesia)

Bonita Pardede; Atik Aprianingsih

Implementation Of Hr Strategy On Employee Development, Involvement In Collaborative And Participatory Approach

Surya Kusumah; Dila Fitriani; Satriadi Satriadi

HR Performance Improvement Based on Talent Management, Servant Leadership and Organizational Commitment

Satriadi Satriadi; Ersa Cahyu Marcelyna; Rahmanisa Rahmanisa; Marhalinda Marhalinda; Sumardin Sumardin

Analysis Of The Application Of Financial Accounting Standards Of Entities Without Accountability Public At The Cooperative Of Employees Of The Republic Of Indonesia

Catur Kumala Dewi

Performance-Focused Human Resource Development In IT Consulting Firms

Umi Kulsum; Titin Ruliana; Nurfitriani Nurfitriani; Heriyanto Heriyanto

Bibliometric Studies In The Use Of Technology And Social Media For Marketing

Eka Yudhyani
Tren Sitasi Jurnal