The Influence of Independent Commissioner on the Indonesian Rural Bank’s Credit Performance

DOI

10.2991/icebef-18.2019.115How to use a DOI?

Keywords

credit performance; internal governance; independent commissioner; expertise; and rural bank

Abstract

One of the main problems with BPRs with core capital below Rp6 billion is that the credit performances of those rural banks tend to deteriorate. From OJK’s investigation, that worsening was caused by the lack of capital, the lack of management, the lack of governance, and the lack of IT system. This research is concentrated to the empirically analyze of the worsening caused by the lack of governance, especially the effects of the existence of independent commissioner and independent commissioner’s expertise on the credit performance of BPRs with core capital below Rp50 billion. It is concentrated to that issue because according to OJK in POJK No.4/POJK.03/2015, the existence of independent commissioner - as one of internal governance mechanism - is only compulsory for BPRs with core capital Rp50 billion and above. This research result shows that independent commissioners' existence and independent commissioner’s expertise have positive significant effects on the credit performance of BPRs with core capital below Rp50 billion.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Nung Harjanto
AU  - Rahmawati Rahmawati
PY  - 2019/05
DA  - 2019/05
TI  - The Influence of Independent Commissioner on the Indonesian Rural Bank’s Credit Performance
BT  - Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)
PB  - Atlantis Press
SP  - 536
EP  - 540
SN  - 2352-5428
UR  - https://doi.org/10.2991/icebef-18.2019.115
DO  - 10.2991/icebef-18.2019.115
ID  - Harjanto2019/05
ER  -