FAKTOR-FAKTOR ESENSIAL BANK GAGAL

Abstract

Bank failure is more important as it should be resolved as quickly as possible because it may transmit to other banks and out of banking system. Based on the result of research conducted by Office of the Comptroller Currency (OCC), poor bank management and other internal problems are a common cause of failed or non-performing banks. Similarly, the poor economic condition makes a bank more uncontrollable. The factors causing bank failure consist of two groups: internal and external factors. Internal factor includes Boards of Directors’ too aggresive activity, problem involving Executive Director, problem related to inadequate supervision or management, and etc. Meanwhile, external factor includes gloomy economic environment.