English

Credit risk is one of the risks which need to be mitigated by Rural Banks (BPR) due to the debtor’s inability to pay off his obligations. Credit management can also affect the liquidity condition of the BPR. During the pandemic, various sectors in society were disrupted, so to protect banking activities, the Deposit Insurance Corporation (Lembaga Penjamin Simpanan/LPS) and Financial Services Authority (Otoritas Jasa Keuangan/OJK) they have issued various policies. However, these policies have another impact, namely an increase in the risk of bad loans. The increased risk of bad debts can affect the income received from the BPR. One way to mitigate credit risk is to perform a credit analysis. The purpose of this study was to examine the implementation of the internal control system in Lending at BPR through the COSO Framework. The method used is a case study with a single case embedded. This study demonstrates that the internal control system implemented in BPR lending activities has been applied in accordance with applicable regulations