Abstract

The purpose of this study is to analyze: 1) To what extent do non-performing loans/bad loans in banks, especially BTN banks, affect and interfere with banking operations? 2) To what extent are available regulations able to provide legal certainty in resolving non-performing loans, especially in BTN banks? 3) How can legal risk mitigation theories help resolve nonperforming loans, especially at BTN bank? This research is a type of empirical juridical research, namely understanding problems using the approach of applicable laws and regulations based on conditions or legal implementation in the field The results of the study show that: 1) The causes of non-performing loans are influenced by several factors, namely internal bank factors and external bank factors. Internal Factors; Weak administrative system by bank officers related to credit, the work of bank officers is not thorough in choosing prospective credit customers so that there are often delays in credit payments, Analysis is not precise, so it is not possible to predict what will happen in the period of time during the credit term; 2) To rescue and resolve non-performing loans, there are two strategies taken. Namely through litigation and non-litigation channels; 3) Legal risk is usually classified as a risk that is difficult to see and can hardly be calculated, especially nonperforming loans. This risk can be in the form of the situation of the customer or debtor where the credit cannot be returned on time, and this cannot be avoided by the bank because the provision of credit is a form of banking activity. 

Keywords: Relevance, Mitigation, Risk, Legal, Settlement, Credit, Problematic, Stuck Bank, State Savings Bank