The Impact of Internal Control Systems on Credit Approval Decisions: A Case Study at PT. Bank Sumut Sidikalang Branch

This study evaluates how elements of the internal control system—namely the control environment, communication and information, risk assessment, control activities, and monitoring—impact credit approval decisions at PT. Bank Sumut, Sidikalang Branch. Using a census method, data were gathered from 30 willing employees through questionnaires, interviews, and document analysis. Responses were measured using a Likert scale and analyzed with SMART-PLS 4 through path analysis. The results revealed that the control environment, risk assessment, control activities, and monitoring all had a significant positive influence on credit decision-making. However, information and communication showed a positive but statistically insignificant effect. These findings suggest that robust internal controls play a key role in promoting careful, informed, and responsible credit decisions.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-08-14
DOI
https://doi.org/10.5281/zenodo.16870294
Primary Topic
Financial Literacy and Behavior
Type
article
Field-Weighted Citation Impact
0.00
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article

The Impact of Internal Control Systems on Credit Approval Decisions: A Case Study at PT. Bank Sumut Sidikalang Branch

Zenodo (CERN European Organization for Nuclear Research)
Financial Literacy and Behavior
article

The Impact of Internal Control Systems on Credit Approval Decisions: A Case Study at PT. Bank Sumut Sidikalang Branch

article en

Abstract

This study evaluates how elements of the internal control system—namely the control environment, communication and information, risk assessment, control activities, and monitoring—impact credit approval decisions at PT. Bank Sumut, Sidikalang Branch. Using a census method, data were gathered from 30 willing employees through questionnaires, interviews, and document analysis. Responses were measured using a Likert scale and analyzed with SMART-PLS 4 through path analysis. The results revealed that the control environment, risk assessment, control activities, and monitoring all had a significant positive influence on credit decision-making. However, information and communication showed a positive but statistically insignificant effect. These findings suggest that robust internal controls play a key role in promoting careful, informed, and responsible credit decisions.

Zenodo (CERN European Organization for Nuclear Research)
Universitas Pembangunan Panca Budi Medan (ID)
Peace, Justice and strong institutions
Openalex Percentile: Top 42%
Financial Literacy and Behavior
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