Open AccessLegal Protection for Creditor Due To Debitors Default in Bank Loan Agreement
Author(s) -
Lelly Kurniawati,
Albertus Sentot Sudarwanto
Publication year - 2019
Publication title -
international journal of social sciences and humanities invention
Language(s) - English
Resource type - Journals
ISSN - 2349-2031
DOI - 10.18535/ijsshi/v6i11.01
Subject(s) - loan , business , creditor , default , finance , financial system , participation loan , revenue , non conforming loan , profitability index , cross collateralization , government (linguistics) , bridge loan , non performing loan , debt , linguistics , philosophy
For bank, loan is one of its core business. In addition to profitability, loan also contains credit risk. Accordingly, Financial Services Authority (OJK) as the supervisory authority of Indonesian banks enforces the credit regulation in Indonesia. This is understandable given that improper credit management may result in bank’s revenue from credit sector, which may disturb the bank’s health due to the decrease of bank's revenue. Therefore, resolution of problem loan is priority for banks. The present study was categorized as normative legal study, the data were analyzed qualitatively. Various attempts were maed to resolve problem loans. One of them is through the filing of small claim court. A number of easiness can be chosen because small claim court is relatively quick and cheap. In the future, the government is expected to provide more pathways to make small claim court, including increasing the maximum nominal of the charge.