Covid-19 Stimulus: Risk Mitigation in Banking Credit Restructuring

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Andi Suci Wahyuni
Farida Patittingi
Amaliyah
Ahsan Yunus

Abstract

In order to sustain a slowdown in the economic rate due to the Covid-19 pandemic. The government issued a national economic stimulus policy to keep national economic stability under control. One of these policies is the provision of relief in fulfilling debtor obligations to the bank as creditors in the credit restructuring scheme. This paper aims to determine how risk mitigation on credit restructuring in statutory regulations and to find out legal protection for banks from an increase in the number of non-performing loans. This paper was a legal research using a statutory approach and a conceptual approach in the form of legal principles and legal concepts related to the object of the problem. The results show that risk mitigation efforts carried out by banks must be based on the principles of credit granting policies, accommodated risk management based on the Basel System and establish standard operating procedures specifically for credit restructuring during the pandemic as well. Classifying the criteria for debtors, credit schemes and business sustainability. And also to prevent the increase in the number of non-performing loans (NPLs), credit clustering is carried out to reduce asset quality. In order to provide legal protection for banks, it is necessary to regulate the guidelines for implementing relaxation regarding credit with collectability of Non-Performing Loan (NPL). The banking sector also anticipates through the agreement to settle credit problems in order to facilitate the sale of assets in the future.

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How to Cite
Wahyuni, A. S., Patittingi, F. ., Amaliyah, & Yunus, A. (2022). Covid-19 Stimulus: Risk Mitigation in Banking Credit Restructuring . BiLD Law Journal, 7(2s), 95–101. Retrieved from https://bildbd.com/index.php/blj/article/view/274
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