The role of BPRs in providing capital assistance to MSME business units, still has to deal with the internal management of the bank's own management. This must be understood because one of the factors to assess the health of a BPR is to look at the NPL (Non- Performing Loan) ratio, calculated from the total loans that fall into the non -current category, divided by the total credit given. Where is the maximum ratio determined by Bank Indonesia, which is below 5%. This means that if a BPR has an NPL ratio above 5%, then it can be assumed that there is a failure in implementing an inefficient and ineffective lending strategy. Therefore, it is necessary to examine the factors that influence the high NPL of rural banks (BPR), especially from credit lending strategies. In addition, economic conditions and business competition and forecasting of future conditions, conduct training for AO to sharpen credit analysis, ensure that the process of submission and disbursement of credit quickly and easily provides various alternative options for debtors to pay their credit, providing standard procedure for granting credit, conducting a survey of the place of business against the submission of business credit. The research objective is to analyze 1) the influence of BP's internal conditions on the lending strategy. 2) Analyzing the effect of Credit Giving Strategy on Non -Performing Loans. The research method uses a survey method with a multiple linear regression approach to obtain information on the influence of both of these. The results of the study show that 1) the internal condition of the BPR has a positive and significant effect on the lending strategy (the condition of the organization within the organization and formally has direct and specific implications on BPR). 2) that the lending strategy has a negative and significant effect on NPL. The lending strategy applied by BPRs
is a means to control the development of credit thrown into the market by the BPR.
DIVERSIFIKASI KREDIT, MONITORING, DAN KINERJA PERBANKAN DI INDONESIA
