European Journal of Molecular & Clinical Medicine

Abstract. The study provides a comprehensive analysis of the credit policy pursued
by the government during the Covid-19 pandemic and its results in order to support the
population and businesses, to prevent large debts.
The study reccomend the following:
The interest rate and terms of loans not only affect the banking sector, but also
directly affect the living standards and quality of life of the population. For this reason, it
would be expedient to provide loans with simplified terms and conditions of repayment to
support entrepreneurship in the country.
According to 2020 data, the interest rates of commercial banks in the country will
be 24%. Under this decree, if a preferential interest rate of 16% was applied, the financial
interest of individuals after October 1, 2020 would be avoided

This study is to examine the effect of pro-growth absorptive strategy and innovation performance, and how innovation performance mediates the effect. The data sources were primary and secondary data obtained from the questionnaire and the Financial Services Authority (Otoritas Jasa Keuangan/OJK) of Indonesia in 2019 related to 57 commercial banks under study. Component-based Partial Least Square (PLS) was used to analyze obtained data through two stages of evaluation model (outer and inner) to test the causal relationship among variables. We found that the pro-growth absorptive strategy has a positive and significant effect on innovation performance and business performance. Innovation performance has a positive and significant effect on business performance. Innovation performance mediates the effect of pro-growth absorptive strategy on business performance, but it is the partial mediating. The main implication of the study is that to maintain and improve business performance, the banks first have to focus on pro-growth absorptive strategy to initiate the implementation of innovation performance.