The Effect of Credit Policy System to the Bank’s Health Level (Case Study at PT. Bank Hana)

Bank has a significant role in economic activities. This led to tighten the inter-bank competition, especially in terms of lending. The credit policy system is one of the important things in banking operations. Credit policy system is a reference for banks in distributing credit to the customers. In addition the credit policy system may also affect the level of health of a bank.The purpose of this study is to determine how the application of credit policies in PT. Hana Bank influences the level of health. The study was conducted to assess whether the credit policy implemented is in accordance with the provisions regulated by Bank Indonesia. The research was conducted in PT.Hana Bank, a subsidiary of Hana Bank Korea.The results showed that PT. Hana Bank has a credit policy system which is comprehensive and structured. This system provides references and limitation for PT. Hana Bank's lending activities in order to minimize risks that may arise in lending activities. The rating of PT. Hana Bank is measured by the ratio of CAR, Liquidity Ratio, NPL and the LDR. It shows that PT. Hana Bank is in healthy condition, which can be seen from the CAR ratio that is above 8%, NPL ratio that is below 5% and LDR ratio that is below 110%, which has been set by Bank Indonesia.Overall performance of PT. Hana Bank is good and the level of health by implementing a credit policy is right on target.