'International Institute for Science, Technology and Education'
Abstract
Banks provide a substantial proportion of external finance to corporations around the globe. Non-Performing Loans (NPL) occur if the bank's confidence through a credit breaker, which is institutional in nature, is not realized that (prospective) debtors are able to repay loans and interest, after the loan or when loan is given. Type of the research is a normative legal research (doctrinal research). The results of the research show that in terms of analyzing credit applications from prospective debtors, Bank Officials must always apply the Directors' Decree regarding the Credit Guidebook. As it turns out in practice, however, it has certain weaknesses, particularly in view of the accountability and legitimacy aspects of its establishment. Hence, widespread expansion in credit, causing banks to provide convenience and caution in the process of granting credit to debtors, by not applying strictly the prudential banking principles when analyzing the credit requested. The effort that must be made by government banks in lending is by applying the prudent principle and the principles of good governance to avoid risks in returning credit from creditors. Immediately resolve and enforce statutory provisions concerning restrictions on currency transactions, to avoid misuse of the authority of bank officials in lending to debtors. Keywords: Bank; Corruption Crime; Criminal Law; Credi
