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APPLICATION OF THE PRUDENTIAL BANKING PRINCIPLES TO PREVENT BAD CREDIT DUE TO THE FLEEING DEBTOR MICRO
LENDING OF BRI REVIEWED FROM BANKING REGULATION Daniar Brihawan Sunggoro
110110090149
ABSTRACT
The role of banks in economic development is the flow of funds related with economic activity in the form of credit for the community individual or bussiness entity. To achieve these goals, banking function as a funding channel to the community or intermediation this is the role of banks required in helping cultivate small business. Banks in lending for financing required for applying prudential banking principles. Micro lending program intended for enterpreneurs having feasible business however not bankable, but in practice problems often arise in terms of non performing loans related with debtor fleeing. Therefore, investigated the application of the prudential banking principles by BRI to prevent bad credit.
The method of research that will be used by the researcher under this writting is method of juridis normative approach, is legal research prioritizing research literature which emphasizes the review of the terms science and how its implementation in practice. Exposure used problem is descriptive analytis, a research which aims to describe and analyze evidence existing in systematic, factual and acurate with legal theories and practice implementation positive law concerning the problems investigated.
Application of prudential banking principle to prevent bad credit in practice by BRI Bank there’re fleeing debtor because delliquent installment loan of micro lending, this is because absence of bad faith of these debtor and banks in the practice incaution in applying prudential banking principles. Therefore every banks incumbent apply prudential banking principles and increased investigated, monitoring and close supervision associated with the implementation of micro lending.
