How Important is the Implementation of Prudential Banking Principles in Multipurpose Al-Ijarah Financing to Minimize Financing Risk

Abstract

Banks generally face many loans (financing), market, operational, and liquidity risks. Financing risk arises when the bank cannot get back the main credit it has given or the funding it is working on. Provision of financing without prior management in the past could be very dangerous to the bank. Consumers in this matter quickly provide false information as a result, the financing was not worth it submitted. Finally, if wrong in management, the financing disbursed will be challenging to collect, aka stuck. This study aims to analyze and determine the implementation, factors, and effectiveness of implementing prudential banking principles in Multipurpose Al-ijarah financing at Bank Muamalat Indonesia KCP Ponorogo. This type of research is qualitative, field research focused on exploring and studying the materials in the field. The results of this study indicate that the form of implementation prudential banking principle in Al-ijarah Multipurpose financing at Bank Muamalat Indonesia KCP Ponorogo is to use the 5C feasibility analysis by Law Number 21 of 2008 concerning Islamic Banking, namely Character, Capacity, Capital, Collateral, and Conditions. In implementing the Prudential Banking principle, Bank Muamalat Indonesia KCP Ponorogo conducts a 5C analysis of prospective customers by coming directly to meet customers on the spot or directly to the office. In field practice, it is preferred to visit customers directly for more flexible communication and direct observation conditions at home.