ANALYSIS FOR MANAGING THE IMPACT OF CORONAVIRUS DISEASE 2019 ON MORTGAGE LOANS BUSINESS PT. BANK MANDIRI (PERSERO), TBK

• Main Author: Melisa
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53254
• Institution: Institut Teknologi Bandung

COVID-19 outbreak is rapidly disrupting business and consumer activity across many countries including Indonesia. Respondent of business survey conducted Bank Indonesia predicts slower business growth in the financial, real estate and corporates services sector in the second quarter of 2020. That business survey align with banking survey conducted by Bank Indonesia indicated slower growth of new loans disbursed by banking industry. This study raises the implication of COVID-19 in banking industry including consumer segment Bank Mandiri especially in Mortgage Loan Business. Bank Mandiri needs to manage the impact of COVID-19 and have an initiative to preparing for the Next Normal on Mortgage Loans Business Bank Mandiri. Bank Mandiri needs to manage effectively through the uncertainty in business issues, operation and technology issues, and accounting and financing issues in order to maintain the company’s value. This study emphasize on business plan for Bank Mandiri managing the impact of COVID-19 in Mortgage Loan Business through restructuring program and business expansion policies. Restructuring program policies Bank Mandiri in COVID-19 pandemic are designed to simplify the process of credit restructuring that will implement the minimum due diligence process. And for business expansion is almost shutdown in new credit with credit expansion policies issued, only low risk segment customer can be process to get new credit. Business plan for Bank Mandiri managing the impact of COVID-19 outbreak has implication for Mortgages Loan Business Bank Mandiri especially for allowance for impairment losses that is the most implicated of COVID-19 outbreak which make increasing cost and erode the revenue. The result is Consumer Loans have initiative focused in business expansion in market criteria segment that have a good quality growth. Recommendation from this research is very important to maintain the collectability and know your customer by involving the branch manager to better knowing their customer and debtors to respond quickly and take preventive measures to maintain the credit quality and needs to focus in business expansion in new normal era for the continuous improvement of Mortgage Loan Business Bank Mandiri.