FINANCIAL PROJECTION OF LOAN USING TOOLS OF AZ SCORE AND US INDEX FOR 2016 UNTIL 2018 (CASE STUDY: STATE OWNED BANK IN JAKARTA)

• Main Author: Oloan Pintu Batu, Boy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46630
• Institution: Institut Teknologi Bandung

The disintegration in the nature of banks credit quality was the gigantic reason for issues in the financial framework and in developed industrializing countries budgetary emergencies. To be sure, the ascending on loan and banking contracts in Indonesia highlight the connections among macroeconomic and monetary stuns and the connection between credit advertise erosion and money related portion hazard. Limiting NPL is an essential for boosting financial development. In the event that NPL is for all time hanging tight, this will influence the assets that are remembered for unrewarding zones. In this manner, NPL is probably going to prevent financial development and lessening monetary proficiency. There are 20 companies assessed in this research. Those are grouped with indicator performing and non performing. After being processed with sequential method, there are several points that can be concluded within this research. Based on the data result, Altman Z score is important to reflect the capability of creditor because it is the projection of company performance especially for profitability, leverage, liquidity, solvency, and activity. Moreover, it become key factor to determine the feasibility of a creditor whether it is given for lending or not. Based on the calculation of US Index for 5 biggest score achieved by performing debtors, it is clear that profitability aspect of each companies lifted up with leverage given by Bank BUDIKARYA. The US Index of performing debtors is > 1, it means they earn to get leverage combine with the credit analysis and AZ score result. On the other hand, for non performing debtors, it obviously shows that US Index is < 1. It means that leverage has negative influence toward profitability of each company so they had difficulties to fulfill their loan payment. The implementation plan is conducted by giving business strategy to enhance loan performance. So, in the future, there will be sustainability in financial side regarding business activities that focus on lending.