Analysis of the Causes of Problemed Home Loan and Alternative Solutions for Development of National Banking Performance
- 10.2991/assehr.k.200108.013How to use a DOI?
- Home Loans, Agreements, Banks, Debtors
The purpose of this study is to comprehend the meaning of factors which cause problematic home loan (KPR) and alternative solutions for the development of national banking performance. This study used sociolegal (socio juridical) method, with the aim of identifying credit problems and legal rules on making KPR/credit agreements at the Bank Nasional Indonesia and alternative solutions that can be made. The results shows the cause of problem loans is due to the default of debtors for several reasons. Research results shows that factors Causing Problematic KPR in the National Banking are stemmed from business problems so that the ability to pay debtors could decreases. Debtors experience termination of employment, another cause is the character of the debtor is not good enough and not transparent in the implementation of the mortgage agreement, so that the debtor does not understand well the credit risk they faced. Consequently, the debtor defaults on the KPR agreement that has been made and agreed. From the bank side, the Bank’s officials are still not aware of credit risk, so that they ignore the precautionary principle in the process of giving KPR to debtors. The application of the principle of prudence and the principle of getting to know customers is one of the key factors in the success of credit management and improving the performance of KPR in national banks.
- © 2020, 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/).
Cite this article
TY - CONF AU - Deasy Soeikromo AU - Sarah Roeroe AU - Nike Kelly Rumokoy PY - 2020 DA - 2020/01/10 TI - Analysis of the Causes of Problemed Home Loan and Alternative Solutions for Development of National Banking Performance BT - Proceedings of the International Conference on Business, Economic, Social Science, and Humanities – Humanities and Social Sciences Track (ICOBEST-HSS 2019) PB - Atlantis Press SP - 60 EP - 63 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.200108.013 DO - 10.2991/assehr.k.200108.013 ID - Soeikromo2020 ER -