Abstract
Since its inception in 2009, BTN has been the first Indonesian national bank to engage in asset securitization operations. Asset securitization is an innovative strategy for obtaining long-term sources of funds, allowing bank to overcome liquidity risk and maturity mis-match problems. In addition to fee-based income, the bank will make money as a service provider. Therefore, this study aims to analyze the implementation of asset securitization and its impact for BTN. The interviews were conducted with the data processing to determine the effects of servicing fee on fee-based income and profitability. The result shows that asset securitization has positive impacts for BTN such as improving the maturity profile to overcome maturity mismatches, increasing CAR, and obtaining servicing fee. Meanwhile, the negative impact is the reduction number of assets in the balance sheet, which can temporary increase NPL ratio until the realization of new loans with good payment quality.
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