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...

Full description

Bibliographic Details
Main Authors: Imansyah Imansyah, Mirza Yuniar Isnaeni Mara
Format: Article
Language:Indonesian
Published: Bank Indonesia 2007-09-01
Series:Bulletin Ekonomi Moneter dan Perbankan
Online Access:https://www.bmeb-bi.org/index.php/BEMP/article/view/218
id doaj-3e97a5f303564537b6967e31741a430a
record_format Article
spelling 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 AT imansyahimansyah penentuanbobotresikokredituntukrumahtinggalstudikasusdiindonesia
AT mirzayuniarisnaenimara penentuanbobotresikokredituntukrumahtinggalstudikasusdiindonesia
_version_ 1725269644367888384