Accounts Receivable Control to Minimize Bad Debts at PT Bank Syariah Indonesia Tbk Kuala Simpang Branch Office

Abstract

This study aims to analyze accounts receivable control in minimizing bad debts at PT Bank Syariah Indonesia Tbk, Kuala Simpang Branch Office. Accounts receivable control is crucial for the sustainability of banking operations, particularly in maintaining financing quality and mitigating the risk of losses arising from non-performing financing. The results indicate that bad debt management at this bank is carried out through financing collectibility mechanisms, the formation of Allowance for Impairment Losses (CKPN), rescheduling, restructuring, and write-offs for uncollectible financing. Supervision is conducted systematically by the Remedial & Recovery Team, the Internal Audit Unit (SPI), and through technology-based management information systems. The Non-Performing Financing (NPF) ratio showed a significant decline from 3.26% in 2021 to 2.15% in 2023, indicating an improvement in the management of non-performing financing. The strategies implemented include applying the 5C principles in financing analysis, periodic monitoring, restructuring, the use of early warning systems, and the involvement of third parties for collection. Key factors contributing to NPF include a decrease in customers' repayment capacity, low financial literacy, and delayed risk identification by the bank's internal departments. Although receivables control has shown effectiveness, improvements are needed through enhanced customer education, human resource competency, and the optimization of information technology. Consequently, a structured and integrated approach to accounts receivable control serves as the key to reducing bad debts and maintaining the bank's financial stability