Abstract
Loans are the largest source of income from banks compared to other sources of income. To ensure bank continuity, Bank income must exist from interest on loans, reaching almost 95% of all bank activities. For companies and banks that apply loan differences, loans are receivables which are cash that is delayed in receipt. Having problem loans can weaken a bank's financial condition. In general, two factors cause problems with loans, namely internal and external factors of the bank. Bank internal factors can be controlled by banks, compared to external factors, to prevent problem loans. Therefore, in this study, an analysis of internal factors affecting problem loans was carried out. The internal factors analyzed are the things that become the process and the essential part of the loan process, which includes loan supervision, acceptance procedures, and loan guarantees. This analysis is carried out to minimize the risk of non-performing loans caused by the inner side of the organization. The method used for analysis is using multiple linear regression analysis. Multiple linear regression analysis analyzed the relationship between the three independent variables (loan monitoring, acceptance procedures, and loan guarantees) and one dependent variable (non-performing loans). Multiple linear regression analysis provides predictions of the value of the dependent variable if the value of the independent variable increases or decreases and describes the direction of the relationship between the independent variable and the dependent variable, whether each independent variable is positively or negatively related. Based on the analysis results, the influence of loan monitoring factors, acceptance procedures, and loan guarantees on problem loans can be concluded that there is an influence between loan supervision and acceptance procedures on problem loans. At the same time, there is no effect between loan guarantees on problem loans.
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