Credit Risk Management Innovation in Bank Based on Blockchain Technology

【Author】 Mutamimah, Mutamimah; Alifah, Suryani; Adnjani, Made Dwi

【Source】PROCEEDINGS OF NINTH INTERNATIONAL CONGRESS ON INFORMATION AND COMMUNICATION TECHNOLOGY, VOL 2, ICICT 2024

【影响因子】

【Abstract】This study develops the concept of credit risk management innovation in banks based on blockchain technology. Credit risk management includes identification, measurement, assessment, and evaluation of creditworthiness for MSMEs. Asymmetric information between banks and MSMEs, as well as the requirements for applying for credit using traditional approaches that still use physical documents or photocopies, leads to the potential for MSMEs to do moral hazard and falsification data. This causes the assessment of eligibility to obtain credit based only on bank perceptions which are not based on real data so that MSME credit risk increases. Therefore, in the current digital era, it is necessary to develop a credit risk management concept for banks based on blockchain technology. The research method uses an integrative literature review by analyzing, reviewing, and critiquing articles as a basis for compiling a bank credit risk management framework based on blockchain technology. This study can conclude that the technology of blockchain can be used as a new approach to bank credit risk management, starting from the process of identifying, measuring, assessing, and making decisions about potential credit risks. Thus, blockchain technology can decrease asymmetric information, and increase transparency, and trust, because it uses smart contracts so all stakeholders can monitor the business activities of other stakeholders in the digital blockchain, there are no third parties and no one can falsify data, which can further reduce credit risk.

【Keywords】Credit risk management innovation; Asymmetric information; Blockchain technology

【发表时间】2024

【收录时间】2024-11-26

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