ANALYSIS OF FACTORS NON PERFORMING LOAN AND RESTRUCTURING CREDIT FOR COMMERCIAL SEGMENT (CASE STUDY: BANK XYZ)

• Main Author: Mutiara Citra, Thalliana
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/57389
• Institution: Institut Teknologi Bandung

Credit distribution is the main activity of banks, therefore the main source of income for banks comes from this activity which provides output in the form of loan interest income. The Bank's activities, in this case collecting and distributing funds, have a very important role in national economic growth, because they are able to increase productivity in the community, by circulating money in the community which will increase consumption, working capital and investment. Banks must distribute quality credit because the risk obtained by banks in terms of lending is very high. The role of the bank as a financial institution is never free from credit problems that can endanger the health of the bank. Therefore, the quality of credit must be considered, because if there are many non-performing loans it will be very detrimental to the bank. There are factors that affect the Non Performing Loan (NPL). The issuance of OJK regulation Number 11/PJOK.03/2020 concerning National Economic Stimulus as a Countercyclical Policy for the Impact of the 2019 COVID-19 Spread is crucial for economic growth and stability of Indonesia's financial system during this pandemic. The regulation states that debt owners (debtors) whose businesses have been affected by the pandemic can apply for restructuring to the relevant financing company, such as a bank. The high value of Non-Performing Loans (NPL) will affect the debt ratio and profit of a bank because in the end the profit will be reserved to cover losses from non-performing loans (CKPN), based on this it is necessary to research whether the restructuring has been effective to restrain the increase in NonPerforming Loans. Performing Loan, for this matter it is necessary to find the most effective restructuring method. There are two research models, namely to find out what factors affect NPL and the success of restructuring by knowing the most effective method from several alternatives, where one alternative is taken from the previous model. This research step begins by processing data on the financial statements of four state-owned banks from 2011-2020 using panel data regression with independent variables, namely CAR, LDR, NIM, BOPO, inflation rate and BI rate with the dependent variable being NPL. The second research is to take one sample, namely Bank XYZ, with qualitative methods through direct interviews with experienced employees at the management level. To get a more objective decision, the author uses a decision making tool using the Analytical Hierarchy Process (AHP) Expert Choices methodology. The results of this study indicate that the factors that affect the NPL are BOPO, NIM and CAR. As for the most effective restructuring method, the rescheduling method with the highest weight compared to all alternatives is the rescheduling method. Based on these facts, it is necessary to implement and develop strategies that support the success of the restructuring and provide clear boundaries regarding debtor criteria in each method of credit restructuring and effective risk management in order to avoid the risk of bad debts.