Implementing the Right Strategy Helps Control Non-Performing Loan. Case Study: Mekar Kasih Credit Union

DOI

10.2991/978-94-6463-758-8_45How to use a DOI?

Keywords

Strategy; Non-Performing Loan; Savings and Loan Cooperatives; Strategic Management; Strategic Planning

Abstract

The main problem often faced by financial institutions engaged in credit business such as savings and loan cooperatives are maintaining the level of non-performing loan at its ideal ratio. Mekar Kasih Credit Union is a cooperative engaged in savings and loan business domiciled in Makassar, South Sulawesi. Mekar Kasih Credit Union has controlled non-performing loans at an ideal condition, below 5% of the loan portfolio. This study aims to examine the relevance between the strategy formulated from the strategic planning process and the success of controlling non-performing loan in cooperatives. The study used a qualitative method through semi-structured interviews with branch managers as management leaders at the branch level and secondary data in the form of document studies. From the research results it can be concluded that the strategy formulated from the strategic planning process is by the conditions in the field and can be implemented well, it can help management performance in controlling non-performing loan. Likewise, if the strategy can be described in concrete steps by TP managers and is relatively understood by the staff who always implement the strategy in the field. The success of the strategy implementation is also supported by a relevant Operations Manual and daily evaluation by Branch Managers of the strategy implementation.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Florianus Elly Pical Gadi
PY  - 2025
DA  - 2025/07/30
TI  - Implementing the Right Strategy Helps Control Non-Performing Loan. Case Study: Mekar Kasih Credit Union
BT  - Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)
PB  - Atlantis Press
SP  - 533
EP  - 539
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-758-8_45
DO  - 10.2991/978-94-6463-758-8_45
ID  - Gadi2025
ER  -