Artificial intelligence and bank credit analysis: A review

Writing this journal aims to analyze the credit agreement of the bank between the bank as a creditor with the Civil Servants as the debtor who uses a photocopy of the Decree of the Appointment of Civil Servants who are legalized as collateral. This journal is prepared using empirical juridical research method and the approach used is case approach and concept approach. Based on the results of this study it is known that the Bank piahk dare to receive a copy of the Decree of the Appointment of Civil Servants who are legalized as collateral in the credit agreement using the juridical basis of credit analysis 5c which is the basic principle of bank credit analysis based on the Law of the Republic of Indonesia Number 10 of 1998 on Amendment to Act Number 7 of 1992 Concerning Banking. Photocopy of a legalized appointment letter of civil servants belonging to movable and intangible objects that can be used as collateral based on the classification of legal guarantees because it has economic value in the form of slip of gajih civil servants. Trust to the debtor is the foundation of the bank providing credit funds. Penulisan jurnal ini bertujuan untuk menganalisis perjanjian kredit bank antara pihak bank selaku kreditor dengan pihak Pegawai Negeri Sipil selaku debitor yang menggunakan fotokopi Surat Keputusan Pengangkatan Pegawai Negeri Sipil yang dilegalisasi sebagai agunan. Jurnal ini disusun dengan menggunakan metode penelitian yuridis empiris dan pendekatan yang digunakan adalah pendekatan kasus dan pendekatan konsep. Berdasarkan hasil penelitian ini diketahui bahwa piahk Bank berani menerima fotokopi Surat Keputusan Pengangkatan Pegawai Negeri Sipil yang dilegalisasi sebagai agunan dalam perjanjian kredit dengan menggunakan dasar yuridis yaitu analisis kredit 5c yang merupakan prinsip dasar analisis kredit bank berdasarkan Undang-Undang Republik Indonesia Nomor 10 tahun 1998 tentang Perubahan Atas Undang-Undang Nomor 7 tahun 1992 Tentang Perbankan. Fotokopi Surat Keputusan Pengangkatan Pegawai Negeri Sipil yang dilegalisasi termasuk ke dalam benda bergerak dan tidak berwujud yang dapat dijadikan agunan berdasarkan klasifikasi hukum jaminan karena memiliki nilai ekonomis berupa petikan slip gajih pegawai negeri sipil. Kepercayaan kepada debitor merupakan dasar pihak bank memberikan dana kredit.

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Financial Borrowing by Local State-Owned Enterprises in Serbia: An Assessment of National Practice

Journal of Central Banking Theory and Practice ◽

10.2478/jcbtp-2020-0003 ◽

2020 ◽

Vol 9 (1) ◽

pp. 45-59

Author(s):

Branko Živanović ◽

Katarina Đulić ◽

Ana Jolović

Keyword(s):

Local Governments ◽

Local State ◽

The Other ◽

Bank Credit ◽

Actual State ◽

Annual Business ◽

Information Asymmetries ◽

Significant Information ◽

Qualitative And Quantitative ◽

Credit Analysis

AbstractSerbian local state-owned enterprises (SOEs) owed in excess of EUR 220mn in late 2015, with estimates reaching a much higher figure. According to the national Fiscal Council, underinvestment by local governments amounted to some EUR 250mn annually. This paper looks at insufficient commercial borrowing by local SOEs trying to identify the causes of this financing gap by looking at two aspects: on one hand, we look at quantitative and qualitative inputs provided by local SOEs for credit analysis that may cause significant information asymmetries, and, on the other, we consider the possibility that bank credit analyses, even if done properly, could reveal that these firms are unable to borrow from banks.The research has revealed that the length and efficiency of the bank credit approval process is dictated by: the need to properly organise qualitative and quantitative SOE information and ensure that it reflects the actual state of affairs; the poor quality of financial statements of SOEs and their pro forma annual business planning and reporting; a common lack of appropriate revaluation of future income; and an existent drawback related to ownership over fixed assets that are considered as a public property in Serbia (rather than as a property of the SOE that uses them).On the other hand, banks do not distinguish sufficiently between private firms and SOEs. This does not allow banks to account for issues specific to SOEs such as the spillover of fiscal risk, corporate governance, relationships between the owner and its SOEs, economic and social objectives, and the like. The frequent inability of local SOEs to provide mortgages as collateral, coupled with the restriction on guarantees from local governments, nearly completely preclude lending for large-scale and long-term investment.We conclude that local SOEs have a limited access to finance due to information asymmetries caused by unsuitable qualitative and quantitative inputs made by SOEs in the credit analysis process. Nevertheless, appropriate credit analyses reveal that these companies can be able to borrow commercially, especially in lower amounts and at shorter maturities which could mitigate underinvestment by local SOEs.

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