THE APPLICATION OF US’ INDEX FOR COMMERCIAL LOAN RESTRUCTURING, AND CREDIT ANALYSIS (CASE STUDY: BANK TABUNGAN NEGARA)

• Main Author: Kurniawan Pramudiono, Ananda
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/38678
• Institution: Institut Teknologi Bandung

Bank Tabungan Negara is an Indonesia-based company primarily engaged in banking sector. BTN is one of state-owned enterprise bank focuses on financing for the housing sector through its three main products, namely consumer banking, commercial banking, and shariah banking. Compared to other BUMN Banks, the value of NPL’s BTN is far from the achievement of other banks. BTN is ranked fifth in terms of the NPL value indicator compared to BCA, BRI, BNI, and Mandiri. Non-performing loans (NPLs) directly affect to the cost of loan which is a deduction from Bank’s profits. If NPL value is high, Bank must provide a large amount of reserves for CKPN. This resulted in reduced bank profits, therefore by depressing the value of NPLs will increase Bank’s profitability. To reduce the value of NPL, collection and restructuring of problem loans must be carried out intensely. Loan restructuring is an improvement made by the Bank in lending activities to debtors who have difficulties in fulfilling their obligations. In 2017 at BTN there were 98 commercial loans that had been carried out with problem loans restructuring. But not all loan restructuring was successful. 50 loan restructuring was unsuccessful. This final project will discuss about the Commercial Loan Restructuring in PT. Bank Tabungan Negara (Persero) Tbk, mainly in finding the most suitable analytical tool to provide non-performing loan restructuring approval. Sample data for analysis is obtained from debtor's financial statement for four years covered (2015-2018) that experienced a loan restructuring failure. By knowing the Z-Score of a company, bank can assess the financial soundness of the company. Financial analysis is used to identify and assess all aspects of a company’s performance, liquidity, and financial position. US 'Index could determine and predict a company capability to serve and meet it’s obligation. Analysis results from the US’ Index are the most suitable with the case of loan restructuring failure at BTN. Altman Z Score still give misleading information. The best tool for analyzing problem loan restructuring is a combination of financial ratios and the use of US’ Index. With this combination, the bank can see the condition and financial performance of the debtor from financial ratios and get a guidance whether the debtor still has the ability to pay or not from the US ’Index. For new loan restructuring proposal, it is recommended to use US’ Index as a tool for helping the decision of debtors to be given credit restructuring or not. For NPL / Bad Credit Rescue System, US’ Index can be used as a monitoring tool. US’ Index also can be used to define loan restructuring schemes of Non-Performing Loan to rescue the company and also to save the quality of bank loans.