Debtor’s Justice in the Settlement of Bad Debts with Repossessed Collateral at Rural Banks
DOI:
https://doi.org/10.59890/ijist.v2i12.92Keywords:
Debtor’s Justice, Repossessed Collateral, Rural BankAbstract
Bad debts are a serious problem in the banking sector, not only harming financial institutions but also impacting the economic conditions of debtors. This study aims to evaluate the implementation of the Repossessed Collateral mechanism in resolving bad debts at Rural banks. The method used is empirical, based on field observations and regulatory analysis, as well as legal literature. The results of the study indicate that the Repossessed Collateral mechanism includes several stages, starting from identifying problem debts, repossessed collateral assets, assessing, selling, to recording in financial statements with settlement within an uncertain deadline. Existing regulations including Financial Services Authority Regulation Number 1 of 2024 concerning the Asset Quality of Rural bank have not clearly provided legal justice to debtors, especially regarding the time period for resolving Repossessed Collateral. Challenges in implementing Repossessed Collateral include unclear regulations, lack of creditor participation in auctions, high legal costs, and minimal education and access to legal assistance for debtors. These obstacles hinder debtors from obtaining justice.
References
Andriyani, Riska, and Kamaliah.R. (2023). Implementation of PNM Mekar Financing in Increasing Micro Businesses Based on Creative Economy Reviewed from Maqasid Sharia. Journal of Islamic Economics and Finance 2 (1).
Aufa, Ismaul, M. Elfan Kaukab, and Ahmad Fahmi Nugroho. (2023). The Role of Wonosobo Regency Government in the Recovery of MSMEs Post Covid-19 Pandemic. MAGNA. Journal of Economics, Management, and Business 2, (1). https://doi.org/10.32699/magna.v2i1.3975.
Chaeroni, Ahmad, and Latifa Mustafida. (2021). Settlement of Credit Agreements with Motor Vehicle Ownership Guarantee at the Limited Liability Company of the Rural bank, Gadjah Mada University, Yogyakarta. Fortiori Law Journal 1 (2).
Dalimunte, Rio Pambudi, Hanonsari Paramita, and Syarifah Adilla. (2018). Challenges of New Digital Communication and the Industrial Revolution 4.0. Proceedings of the 2nd National Communication Conference (1).
Haryansah, Dodi. (2021). Settlement of Bad Credit with Collateral as an Effort to Restore Banking (Case Study of PT. Bank Sulawesi Utara Gorontalo).LexAdministratum9(5).https://ejournal.unsrat.ac.id/v3/index.php/administratum/article/view/33999.
Safitri, Yunia, and Abel Tasman. (2021). Analysis of Credit Risk Management in BTN Home Ownership Credit Products. Ecogen Journal 4 (2). https://doi.org/10.24036/jmpe.v4i2.11107.
Salamah, Ade. (2023). Prudential Banking Principles in Sharia Financing to Reduce the Risk of Non-Performing Loans. VERITAS 9 (1). https://doi.org/10.34005/veritas.v9i1.2598.
