DAYS PAST DUE DETERMINANTS OF MICRO, SMALL AND MEDIUM ENTERPRISE LOAN CASE STUDY OF PT BANK XYZ

• Main Author: Abdul Kohar 29114470, Ruslan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30730
• Institution: Institut Teknologi Bandung

PT Bank XYZ is facing problems in NPL and portfolio of micro, small and medium enterprise segments that has to meet requirements of authorities. In the end 2018, PT Bank XYX is obliged to manage micro, small and medium enterprise segment at least 20% of the total loan portfolio from 2% in 2016. Also, NPL of this segment is the highest among the others segment products. This study is to find relationship between debtors & loan products characteristics and Days Past Due (DPD) determinants of MSM enterprise. Days Past Due as a proxy of NPL is dependent variable, while debtors and loan product characteristics are independent variables. Multi-linear regression is employed to find the relationship between independent and dependent variables. This research is limited to the debtors and loan product characteristics of PT Bank XYZ as of 31 October 2017 for MSM enterprise loan product only. In terms of debtor’s characteristics, this research found that repayment performance of junior high school is not better than senior high school as reference variable, otherwise bachelor degree is better than reference variable. Repayment performance of females are better than male. While, repayment performance of debtors aged under 50 are not better than who aged more than 50. Also, agro and processing economic sector are not better than trading sector in repaying obligation, conversely construction and service sector are better than trading sector. In terms of loan product characteristics, interest rate has statistically significant positive with DPD. In the other hand, investment loan has statistically significant negative with DPD. Some recommendations are, firstly, Debtors are advised to enhance their knowledge and skill. Secondly, PT Bank XYZ should develop special product for women and educate the debtors in financial management. Thirdly, government is advised to issue policies that provide benefits to farmers.