Evaluation of the Implementation of GCG Principles in Green Credit Distribution Procedures at Rural Banks (BPR) in Malang City (Qualitative Study)

Abstract

The purpose of this research is to assess how the implementation of Good Corporate
Governance (GCG) principles in green credit distribution procedures at Rural Banks (BPR) in
Malang city. A qualitative approach was used, collecting data through in-depth interviews with
bank managers and staff, supported by a literature review of regulations and previous studies.
The findings reveal that transparency and accountability are generally well-maintained,
ensuring clear documentation and traceable decision-making. However, fairness and
responsibility face challenges due to limited resources and regulatory constraints. The
incorporation of environmental considerations in credit distribution is still at an early stage,
influenced by operational scale, risk perception, and staff awareness. Organizational culture
and leadership commitment play a crucial role in shaping adherence to GCG principles and
promoting sustainable practices. Theoretically, this study contributes to understanding
governance in green financing within micro-level financial institutions. Practically, it provides
insights for regulators and bank management to enhance compliance, develop policies, and
promote responsible lending. The novelty lies in focusing on GCG in green credit at BPRs, an
underexplored area.