The Effect of Internal Banks and Internal Debtor against Problem Credits in Some Common Banks in Jayapura

Abstract

This study aims to obtain empirical evidence about the significance of the influence of bank internal factors and debtor internal factors on problem loans. To test the influence of internal factors and debtors' internal factors on problem loans, a quantitative descriptive analysis method is used with multiple linear regression statistical analysis tools. The results of multiple regression statistical tests show that internal bank factors that have a positive and significant effect on non-performing loans are because credit analysis variables do not refer to guidelines and levels of control after credit disbursement, whereas the interests of bank staff and debtors have a positive effect, and credit disbursements that are not in accordance with bank provisions have a negative effect, but not significantly to problem loans. Furthermore, debtor internal factors that have a positive and significant effect on problem loans are variable use of credit by the debtor and debtor management weaknesses, while debtor behavior variables that are not good have a positive effect, but are not significant.

Keywords: Internal Impacts, Banks, Debtors, Credit Problems.