Strategy for Handling Non-Performing Loans at PT Bank Tabungan Negara (Persero) Tbk. Manado Branch to Improve Financial Performance

Abstract

This study aims to analyze the strategies for handling non-performing mortgage loans (KPR) at PT Bank Tabungan Negara (Persero) Tbk, Manado Branch, and their impact on the bank’s financial performance. The research employs a descriptive qualitative method with a case study approach. Data were collected through semi-structured interviews with the credit manager, recovery staff, and credit staff, as well as observation and documentation of internal financial reports. Data were analyzed using Miles & Huberman’s model through data reduction, data display, and conlusion drawing, supported by triangulation of sources and techniques. The findings indicate that mortgage NPLs at BTN Manado Branch are mainly caused by declining debtor, income, uncooperative debtor behavior, and administrative constrains. The dominant strategy applied is loan restructuring (rescheduling & restructuring), while litigation and asset recovery are used as the last resort. However, implementation faces several obstacles, including delayed document submission, lengthy internal procedures, and limited utilization of the PPDigital BTN system. Restructuring has proven effective in keeping the NPL ratio below the OJK standard, although it led to a decline in profitability (ROA) and an increase in the efficiency ratio (BOPO). In conclusion, restructuring remains the main strategy for handling non-performing loans, maintaining asset quality, yet requiring improvements in digital reporting,coordination, and evaluation mechanism.