Evaluation of Credit Risk Policies and Analysis of Collection Productivity and Its Effect on Non Performing Loan of PT. XYZ Finance

  • Fredyanto Manalu
  • Ida Juda
  • Linus Pasasa
Keywords: Non-performing loan, Credit scoring, Collection capacity, Leadership style


The purpose of this study is to analyze the causes of non-performing loan that has not
improved yet in PT XYZ Finance despite implementation of the Minimum Down Payment
policy in accordance with the Financial Service Authority (OJK) regulations. An analysis will
be conducted on the company's internal policy such as its credit policy, especially the accuracy
of its credit scoring method, its capacity of collection and managing its collection team.
Secondary data will be used to analyze the parameters which might have an impact on the
non-performing loan, while primary data were obtained by using questionnaires to direct
supervisors of the collectorsto know their leadership style. The data were analyzed using SPSS,
simple regression, Kolmogorov Smirnov (KS) test, and Structural Equation Model (SEM) to
test the hypothesis.
Findings of this research will significantly impact the company’s policy to improve and form a
comprehensive strategy for its credit scoring accuracy, adjusting its capacity of collection based
on customer potential default using a more accurate credit scoring system and also a more
applicable leadership style to manage its collection team in order to reduce its non-performing