Strategies for Handling Problematic Financing in Micro Business Capital Financing Products at Bank Muamalat Indonesia KCP Ponorogo

Abstract

Non-performing financing has an unfavorable impact on Islamic banks. The greater the non-performing financing faced by the bank, the lower the operational health level of the bank. A decrease in the quality of financing and the level of bank health will affect the financial liquidity and solvency of the bank. This study finds out how the strategy of handling problem financing, the obstacles to handling problem financing, and the impact of handling problem financing on micro business capital financing products. In the preparation of this research the author used the field research method, this research uses a qualitative descriptive approach, the data collection technique in this research is by conducting interviews and observations. The results showed that: the strategy of handling problematic financing in micro business capital financing products is that the bank first approaches customers and intensive billing, after that restructuring with rescheduling, reconditioning and finally collateral execution. The obstacles in handling non-performing financing on micro business capital products at Bank Muamalat Indonesia KCP Ponorogo include 2 factors, namely external factors and internal factors, as for external factors caused by customers, namely the rejection of customers, customers avoiding and bad customer characters, from internal factors are minimal human resources, less intense communication, less careful officers in analyzing customer eligibility. While the impact of handling problematic financing on micro business capital products at Bank Muamalat Indonesia KCP Ponorogo is still less effective because there are still customers who experience problematic financing, however, the bank continues to strive so that handling problematic financing can have an impact on bank profitability, reduce NPF, improve the bank's SID system, and so that customers avoid bank debt.