PENENTUAN BOBOT RESIKO KREDIT UNTUK RUMAH TINGGAL: STUDI KASUS DI INDONESIA
This paper analyzes the appropriateness of the basic risk weight for the fully secured residential mortgage, recommended in Basel II, to be implemented on Indonesian economy. As the supervisory authorities can customize the 35% of recommended risk weight based on the national arrangements, we analyz...
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doaj-3e97a5f303564537b6967e31741a430a2020-11-25T00:45:31ZindBank IndonesiaBulletin Ekonomi Moneter dan Perbankan1410-80462460-91962007-09-0110123 – 4823 – 4810.21098/bemp.v10i1.218218PENENTUAN BOBOT RESIKO KREDIT UNTUK RUMAH TINGGAL: STUDI KASUS DI INDONESIAImansyah ImansyahMirza Yuniar Isnaeni MaraThis paper analyzes the appropriateness of the basic risk weight for the fully secured residential mortgage, recommended in Basel II, to be implemented on Indonesian economy. As the supervisory authorities can customize the 35% of recommended risk weight based on the national arrangements, we analyze the practical ground of the residential mortgage in Indonesia focusing on the probability and the loss given default for this credit type. The result propose a lower risk weight for a fully secured residential mortgage risk weight. For a different types of residential mortgage, this paper suggest the use of Loan to Value (LTV) ratio to determine the risk weight. Rather than using a uniform 50% risk weight as required by the current regulation, our result recommend to give a different weight for a different LTV class; 75% weight for LTV greater than 90%, 50% for LTV between 80% to 90%, 45% for LTV between 70% to 80%, and 40% for a LTV less than 70%. However, the adoption of the proposed residential mortgage risk weight is subject to 2 strict prudential criterias; (i) the loan is used as the residence of the borrower; (ii) the loan is secured by the first lien or first legal charge on the residential property. Keywords: weight risk, bank, mortgage, default, Basel II, Indonesia. JEL Classification: E51, G21https://www.bmeb-bi.org/index.php/BEMP/article/view/218 |
collection |
DOAJ |
language |
Indonesian |
format |
Article |
sources |
DOAJ |
author |
Imansyah Imansyah Mirza Yuniar Isnaeni Mara |
spellingShingle |
Imansyah Imansyah Mirza Yuniar Isnaeni Mara PENENTUAN BOBOT RESIKO KREDIT UNTUK RUMAH TINGGAL: STUDI KASUS DI INDONESIA Bulletin Ekonomi Moneter dan Perbankan |
author_facet |
Imansyah Imansyah Mirza Yuniar Isnaeni Mara |
author_sort |
Imansyah Imansyah |
title |
PENENTUAN BOBOT RESIKO KREDIT UNTUK RUMAH TINGGAL: STUDI KASUS DI INDONESIA |
title_short |
PENENTUAN BOBOT RESIKO KREDIT UNTUK RUMAH TINGGAL: STUDI KASUS DI INDONESIA |
title_full |
PENENTUAN BOBOT RESIKO KREDIT UNTUK RUMAH TINGGAL: STUDI KASUS DI INDONESIA |
title_fullStr |
PENENTUAN BOBOT RESIKO KREDIT UNTUK RUMAH TINGGAL: STUDI KASUS DI INDONESIA |
title_full_unstemmed |
PENENTUAN BOBOT RESIKO KREDIT UNTUK RUMAH TINGGAL: STUDI KASUS DI INDONESIA |
title_sort |
penentuan bobot resiko kredit untuk rumah tinggal: studi kasus di indonesia |
publisher |
Bank Indonesia |
series |
Bulletin Ekonomi Moneter dan Perbankan |
issn |
1410-8046 2460-9196 |
publishDate |
2007-09-01 |
description |
This paper analyzes the appropriateness of the basic risk weight for the fully secured residential mortgage, recommended in Basel II, to be implemented on Indonesian economy. As the supervisory authorities can customize the 35% of recommended risk weight based on the national arrangements, we analyze the practical ground of the residential mortgage in Indonesia focusing on the probability and the loss given default for this credit type.
The result propose a lower risk weight for a fully secured residential mortgage risk weight. For a different types of residential mortgage, this paper suggest the use of Loan to Value (LTV) ratio to determine the risk weight. Rather than using a uniform 50% risk weight as required by the current regulation, our result recommend to give a different weight for a different LTV class; 75% weight for LTV greater than 90%, 50% for LTV between 80% to 90%, 45% for LTV between 70% to 80%, and 40% for a LTV less than 70%.
However, the adoption of the proposed residential mortgage risk weight is subject to 2 strict prudential criterias; (i) the loan is used as the residence of the borrower; (ii) the loan is secured by the first lien or first legal charge on the residential property.
Keywords: weight risk, bank, mortgage, default, Basel II, Indonesia.
JEL Classification: E51, G21 |
url |
https://www.bmeb-bi.org/index.php/BEMP/article/view/218 |
work_keys_str_mv |
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