The Implementation of Prudential Banking Principle In The Process of Channeling of Funds At Bank Riau Kepri Based on Banking Law
Abstract. A bank is a company whose business activities raise funds from the
community, channel funds to the public, and provide financial services. Of the
three business activities of the bank, the activity of channeling funds is an
activity that is a source of income spread to banks. However, large profits are
directly proportional to the high level of risk, namely the occurrence of nonperforming
loans. What is the implementation of prudential banking principle
in the process of channeling funds to Bank Riau Kepri under the Banking Act?
The method used in this research is socio-legal research. The results of this study
that based on Law Number 10 of 1998 about Banking, credit provided by banks
contains risks, so that in its implementation banks must pay attention to sound
credit principles. To reduce this risk, before giving credit, banks must make a
careful assessment of the character, ability, capital, collateral and business
prospects of the customer, or better known as the principle of 5C (character,
capacity, capital, collateral, and condition). The implementation of prudential
banking principle in the process of channeling funds to Bank Riau Kepri is
regulated in the form of Decree of the Board of Directors of Bank Riau Kepri
Number 22 / KEPDIR / 2013 about Bank Credit Policy.
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