Version 1
: Received: 8 May 2024 / Approved: 9 May 2024 / Online: 13 May 2024 (04:27:13 CEST)
How to cite:
Manurung, K. A. A.; Siregar, H.; Fahmi, I.; Hakim, D. B. Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia. Preprints2024, 2024050600. https://doi.org/10.20944/preprints202405.0600.v1
Manurung, K. A. A.; Siregar, H.; Fahmi, I.; Hakim, D. B. Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia. Preprints 2024, 2024050600. https://doi.org/10.20944/preprints202405.0600.v1
Manurung, K. A. A.; Siregar, H.; Fahmi, I.; Hakim, D. B. Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia. Preprints2024, 2024050600. https://doi.org/10.20944/preprints202405.0600.v1
APA Style
Manurung, K. A. A., Siregar, H., Fahmi, I., & Hakim, D. B. (2024). Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia. Preprints. https://doi.org/10.20944/preprints202405.0600.v1
Chicago/Turabian Style
Manurung, K. A. A., Idqan Fahmi and Dedi Budiman Hakim. 2024 "Sustainable Value Chain for Sustainable Lending of State-Owned Banks in Indonesia" Preprints. https://doi.org/10.20944/preprints202405.0600.v1
Abstract
Banks have enormous potential in supporting the achievement of sustainable development goals (SDGs) in accordance with their function as financial intermediaries through sustainable lending. However, the average national financing growth for the sustainable business activity category over the past four years is still 12%. The aim of this research is to identify the conditions of sustainable lending at state-owned conventional banks and analyze the influence of the value chain, economic performance and ESG performance on sustainable lending. The research was conducted at state-owned commercial banks in Indonesia. The research utilized a Structural Equation Modeling (SEM). The SEM results of this study describe value chain, ESG performance (environmental, social and governance) and economic performance have direct and positive influences on sustainable lending, of which ESG performance has the biggest influence. As per individual aspect, social orientation gives the biggest contribution toward sustainable lending.
Keywords
commercial bank; value chain; sustainable lending; ESG performance; economic performance
Subject
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
