Proceedings of the International Conference on Business, Economic, Social Science, and Humanities – Humanities and Social Sciences Track (ICOBEST-HSS 2019)

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Analysis of the Causes of Problemed Home Loan and Alternative Solutions for Development of National Banking Performance

Authors
Deasy Soeikromo, Sarah Roeroe, Nike Kelly Rumokoy
Corresponding Author
Deasy Soeikromo
Available Online 10 January 2020.
DOI
10.2991/assehr.k.200108.013How to use a DOI?
Keywords
Home Loans, Agreements, Banks, Debtors
Abstract

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.

Copyright
© 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/).

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Volume Title
Proceedings of the International Conference on Business, Economic, Social Science, and Humanities – Humanities and Social Sciences Track (ICOBEST-HSS 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
10 January 2020
ISBN
978-94-6252-883-3
ISSN
2352-5398
DOI
10.2991/assehr.k.200108.013How to use a DOI?
Copyright
© 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

risenwbib
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  -