Analysis of Financial Statements in Credit Analysis at Rural Bank

Authors

  • Fauzal Asraf, Dewinta Rina Sitepu, Fitriana, Iskandar Muda, Isnen Fitri, Erman Munir, Endang Sulistya Rini

Keywords:

Assessment, financial statement, credit analysis, finance ratio

Abstract

This paper purpose to give information to the reader about the analysis of financial statement for credit analysis at rural bank. The research methodology used in this research is library research. The finding are: Before disbursing credit to debtors, credit analysis is required through the analysis of financial statements. Measurement of company performance through financial ratios can provide an overview of how the company is managed and its ability to pay its obligations. The results of this study can explain about (1) the importance of financial position for banks in approve credit applications, (2) analysis procedures of the prospective debtor's financial statements by bank, (3) analysis of the 5C principles of prospective debtors who carried out by banks, (4) effectiveness of supervision credit, and (5) minimize or prevent the occurrence of bad credit by debtors that can harm the bank as a creditor.

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Published

2022-08-02