Study of Internal Control on the Credit Granting System

Abstract

Internal control is a method used by managers/company leaders in running the company to achieve its goals, namely increasing the efficiency and effectiveness of bank performance in lending to minimize arrears in credit payments from customers. Early detection of bad loans is mandatory so as not to cause losses from credit arrears. The purpose of this article is to determine the internal control system in an effort to prevent bad loans at banks. The method used in making this article is a qualitative method by using literature studies from various journals on the topic of the internal control system for providing credit to banks that have been collected previously. The purpose of this article is to determine the internal control system in an effort to prevent bad loans at banks. The results obtained are that it is known that the internal control system for providing credit at national banks such as BRI and others has been implemented properly in accordance with the guidelines and standards/procedures for lending issued by Bank Indonesia, the internal control system for providing credit at Rural Banks (BPR) which have limited personnel and/or capital have not been running well and the internal control system for providing credit at the guarantor financial institution (Leasing) is running quite well.