THE MOST INFLUENCING FACTOR OF 5C PRINCIPLE IN ACCEPTING CREDIT CARD APPICATION (A CASE STUDY OF PT. BANK CENTRAL ASIA TBK. BRANCH KISAMAUN, TANGERANG)

Abstract

Bank is public funds rise entity in form of savings and channeling it to public whether in form of credit or other in order to improve the living standard of people. Along with the time after credit realization, bank faces the risk problem, namely Non-Performing Loans. Like a thousand ways to rome, many ways can use done to minimize credit risk. One of the ways often use is 5C (Character, Capacity, Capital, Condition of Economy, and collateral) principle to analyze customer. BCA (Bank Central Asia) as the largest private bank in Indonesia has been facing several cases of non-performing loan because of some of the customer can’t afford their credit bill. BCA has been given the best performance in decreasing NPLs of theirs. In 5 years they maintain their overall NPL’s in the lowest point of other bank. Good risk management and prudent principle – 5C bring a good result in their NPLs chart. But even in BCA was in the lowest level of NPLs ratio, BCA NPL increasing since 2011 from 0,5% to 0,7% at the end of 2013. This research particularly concern in the most dominant factor in 5C . In various references mentioned the most dominant factor is character which is very important to be explore by a bank officer before execute eligible customer. The research population is customer BCA Kisamaun, Tangerang. This research is quantitative research which utilizes multiple regression analysis. The total sample is 387 the conclusion of the research is character as the most influencing factor of 5C principle in deciding good credit card applicants of BCA. In multiple regression analysis those variable contribute as much as 69.2% to deciding good credit card applicant. The most contributing factor is character with its T_countvalue 16.580.