ANALYZING THE CREDIT RISK MANAGEMENT AND ITS ROLE IN ALLEVIATING NON-PERFORMING LOANS AT PT BANK BANTEN

Abstract

This study aims to study and understand the implementation of risk management that can minimize Bank Banten's credit problems. The research is also intended to find out what steps can be taken to overcome troubled credit. The methods used in this research are descriptive research methods as well as a quantitative approach. This study obtained results that indicate that the implementation of credit risk management at Bank Banten, which includes the entire analysis that has been done, has been exceptionally well realized. Based on research conducted using non-performing loans and NPL data for the 2020-2022 period sourced from the Financial Statements of PT Bank Banten. PT Bank Banten has reached a maximum NPL level over the standard set by Bank Indonesia, which is at the 5% level. Although 2022 Bank Banten's NPL percentage rate has decreased, the figure is still said to be high and is still above the maximum limit set. The high number of NPLs is because the credit given to customers cannot be collected in part or whole. Problematic credit settlement can be achieved by holding a security auction submitted by the debtor when the debtor applies for credit, payment directly by the debtor, utilizing GMW instruments, and establishing bilateral cooperation with other banks.