THE ANALYSIS OF NON-PERFORMING LOAN AND CREDIT RISK BASED ON ECONOMIC SECTOR IN BANK BUKOPIN

• Main Author: Noor Pratiwi, Karlina
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53123
• Institution: Institut Teknologi Bandung

Banks have several risks that must be managed, where the main risk is credit risk where the indicator is the Non-Peforming Loan (NPL) ratio. Bank Bukopin is facing an increase in NPLs from year to year with the increasing number of bad debts that have almost reached the limit set by the FSA of 5%. The high number of bad debts affects credibility and erodes company profits. The purpose of this research is to determine the effect of CAR, LDR, and OEOI on NPL and to analyze credit risk based on NPL per economic sector, so that it can assist Bank Bukopin in analyzing bad credit problems and give information for future credit expansion. This research uses Bank Bukopin's financial data for the period 2010 - 2020Q3, with the independent variables being CAR, LDR, and OEOI while Net NPL as the dependent variable. In this research, a statistical test was used to determine the effect of CAR, LDR, and OEOI on Net NPL and an analysis was carried out on the performance of Bank Bukopin's NPL based on the economic sector in the period 2010-2020Q3. To strengthen the analysis, the authors used a qualitative method by conducting interviews with internal company management. The results of this research are CAR, LDR, and OEOI simultaneously affect the Net NPL by 64.7%. The consumer (individual) and retail economic sectors are the largest NPL contributors to Bank Bukopin, so they must be handled immediately according to the business cycle and in the future Bank Bukopin can be more selective in credit expansion. Based on the research results, the components of LDR and OEOI that affect NPL must be monitored. In addition to focusing on credit, Bukopin must maintain its liquidity and continue to carry out efficiency so that operating expenses can be reduced. Bank Bukopin must improve the credit process so that it can reduce credit risk in the future. Bank Bukopin must maintain ratios which are indicators of bank performance. The author suggests creating a risk outlook that informs the condition of the economic sector in Indonesia that can be accessed by all employees, so as to minimize the risk of credit extended.