Public confidence is a crucial factor in the success of a bank

Oct 13, 2025 by wbrum.org 136 views

Credit Account Analysis in the Financial Position Statement of PT. Bank of North Sumatra for the period 2018-2020: Explore the performance and health of the bank

As a public confidence institution, banks play a vital role in bridging the needs of funds between those who have excess funds (surplus units) and those who need funds. The main activity of the bank, namely receiving deposits and giving credit, is the heart of its operational. In carrying out this role, banks do not only depend on their own capital, but rely more on public funds. This shows the level of public confidence in a very high bank. Public confidence is a crucial factor in the success of a bank, as it directly affects the bank's ability to attract deposits and provide credit to its customers.

PT. Bank of North Sumatra, as one of the banks in Indonesia, of course also has a credit commitment that continues to run and is influenced by external conditions. In this analysis, we will examine more about the credit account listed in the statement of financial position of PT. Bank of North Sumatra for the period 2018-2020. Through this analysis, we can find out the extent of bank performance and health in providing credit. Understanding the credit account is essential in evaluating the bank's ability to manage risk and provide credit to its customers.

Why analyze credit accounts?

Credit account analysis is very important to understand several things, including:

*** Bank Performance: ** Credit accounts reflect the ability of banks to channel funds to the public, which in turn will have an impact on economic growth.** A bank's ability to provide credit is a key indicator of its performance, as it directly affects the bank's ability to generate revenue and create jobs. *** Bank Health: ** Bad credit level (NPL) reflects the risks faced by banks in providing credit. The higher the NPL, the greater the risk of loss borne by the bank.** A high level of non-performing loans (NPL) can indicate a bank's inability to manage risk and provide credit to its customers. *** The ability of banks in managing risk: ** Credit account analysis can help assess the ability of banks in managing credit risk, such as the risk of failure to pay from the debtor.** A bank's ability to manage risk is critical in providing credit to its customers, as it directly affects the bank's ability to generate revenue and maintain its financial stability. *** Obedience to regulations: ** Bank Indonesia Regulation (BI) regulates strictly regarding the granting of credit by banks, including the ratio of credit to third party funds (LDR) and capital adequacy ratios (CAR). This analysis helps assess the obedience of PT. North Sumatra Bank against the regulation.** A bank's ability to comply with regulations is essential in maintaining its financial stability and providing credit to its customers.

What are analyzed?

Here are some aspects of the credit account that will be analyzed:

*** Total credit channeled: ** The total amount of credit given by PT. Bank of North Sumatra for three years, both in the form of working capital loans and investment loans.** This analysis will help evaluate the bank's ability to provide credit to its customers and generate revenue. *** bad credit (NPL): ** The percentage of credit is bad for the total credit distributed.** This analysis will help evaluate the bank's ability to manage risk and provide credit to its customers. *** Credit Ratio to Third Party Funds (LDR): ** This ratio shows how much credit is given compared to the funds obtained from the public.** This analysis will help evaluate the bank's ability to manage risk and provide credit to its customers. *** Capital adequacy ratio (CAR): ** This ratio shows how much capital the bank has compared to the total assets.** This analysis will help evaluate the bank's ability to maintain its financial stability and provide credit to its customers.

Benefits of Analysis

This analysis is expected to provide a comprehensive picture of the performance and health of PT. North Sumatra Bank in providing credit. The results of this analysis can be used by various parties, such as:

*** Bank Management: ** To evaluate credit distribution strategies and identify areas that need to be improved.** This analysis will help bank management evaluate the bank's credit distribution strategies and identify areas that need to be improved. *** Investor: ** To assess bank performance and make investment decisions.** This analysis will help investors assess the bank's performance and make informed investment decisions. *** Customer: ** To assess the credibility of the bank and make decisions related to banking services to be used.** This analysis will help customers assess the bank's credibility and make informed decisions related to banking services. *** Government and Regulators: ** To monitor the health of the banking industry and oversee the banking of the bank of regulations.** This analysis will help government and regulators monitor the health of the banking industry and oversee the bank's compliance with regulations.

Conclusion

Through credit account analysis in the statement of PT. Bank of North Sumatra for the 2018-2020 period, is expected to be able to gain a better understanding of the performance and health of the bank in providing credit. The results of this analysis can be taken into consideration for various parties to make the right decision related to the bank. Understanding the credit account is essential in evaluating the bank's ability to manage risk and provide credit to its customers.

Recommendations

Based on the analysis, the following recommendations are made:

Improve credit distribution strategies: The bank should improve its credit distribution strategies to increase the total amount of credit given and reduce the level of non-performing loans (NPL).
Increase capital adequacy ratio (CAR): The bank should increase its capital adequacy ratio (CAR) to maintain its financial stability and provide credit to its customers.
Comply with regulations: The bank should comply with regulations, such as the ratio of credit to third party funds (LDR) and capital adequacy ratios (CAR), to maintain its financial stability and provide credit to its customers.

By implementing these recommendations, PT. Bank of North Sumatra can improve its performance and health in providing credit and maintain its financial stability.
Frequently Asked Questions (FAQs) about Credit Account Analysis in the Financial Position Statement of PT. Bank of North Sumatra for the period 2018-2020

In this article, we will answer some of the frequently asked questions (FAQs) about credit account analysis in the financial position statement of PT. Bank of North Sumatra for the period 2018-2020.

Q: What is credit account analysis?

A: Credit account analysis is a process of evaluating the credit account of a bank, in this case, PT. Bank of North Sumatra, to understand its performance and health in providing credit to its customers.

Q: Why is credit account analysis important?

A: Credit account analysis is important because it helps to evaluate the bank's ability to manage risk and provide credit to its customers. It also helps to identify areas that need to be improved in the bank's credit distribution strategies.

Q: What are the key aspects of credit account analysis?

A: The key aspects of credit account analysis include:

Total credit channeled
Bad credit (NPL)
Credit Ratio to Third Party Funds (LDR)
Capital adequacy ratio (CAR)

Q: What is the significance of total credit channeled?

A: Total credit channeled is a key indicator of a bank's ability to provide credit to its customers. It shows the total amount of credit given by the bank over a period of time.

Q: What is the significance of bad credit (NPL)?

A: Bad credit (NPL) is a key indicator of a bank's ability to manage risk. It shows the percentage of credit that is bad or non-performing.

Q: What is the significance of credit ratio to third party funds (LDR)?

A: Credit ratio to third party funds (LDR) is a key indicator of a bank's ability to manage risk. It shows the ratio of credit given to the funds obtained from the public.

Q: What is the significance of capital adequacy ratio (CAR)?

A: Capital adequacy ratio (CAR) is a key indicator of a bank's ability to maintain its financial stability. It shows the ratio of capital to total assets.

Q: How can credit account analysis be used?

A: Credit account analysis can be used by various parties, including:

Bank management to evaluate credit distribution strategies and identify areas that need to be improved
Investors to assess bank performance and make investment decisions
Customers to assess the credibility of the bank and make decisions related to banking services
Government and regulators to monitor the health of the banking industry and oversee the bank's compliance with regulations

Q: What are the benefits of credit account analysis?

A: The benefits of credit account analysis include:

Improved understanding of the bank's performance and health in providing credit
Identification of areas that need to be improved in the bank's credit distribution strategies
Enhanced ability to manage risk and provide credit to customers
Improved compliance with regulations

Q: How can credit account analysis be implemented?

A: Credit account analysis can be implemented by:

Reviewing the bank's financial statements and credit account data
Analyzing the key aspects of credit account analysis, including total credit channeled, bad credit (NPL), credit ratio to third party funds (LDR), and capital adequacy ratio (CAR)
Identifying areas that need to be improved in the bank's credit distribution strategies
Implementing recommendations to improve the bank's performance and health in providing credit

By understanding the importance and benefits of credit account analysis, banks can improve their performance and health in providing credit and maintain their financial stability.