Banking sector in Indonesia has a market share of around 80% of the entire financial system. The bank has an important function in the economy of a country, namely as a financial intermediary, which collects funds from the public that has a surplus of funds in the form of deposits and redistributes the funds to the people who need funds or fund deficits in the form of credit. In channeling the funds, banks should pay attention to the quality of credit because if in the future there is a problem loan or non-performing loan (NPL), it will harm the bank itself. Bank XYZ is one of Indonesia’s longstanding banks in Indonesia and is also known as a focused and consistent bank in the micro, small and medium enterprises sector with a credit growth of 12.14% in 2017. Loans disbursed or granted are expected to be runs smoothly until the credit is declared complete or paid off, but the potential for risk will always exist, one of them is the risk of default (default) which can lead to an increase in non-performing loans (NPLs) of 2.16% in 2017. The highest NPL credit in the Bank XYZ is in the consumer segment, which is 41%. The research to see the factors that influence the consumer credit NPL of Bank XYZ uses secondary data with the variable of NPL, gender (X1), age (X2), marital status (X3), education (X4), occupation (X5), tenor / time period (X6), collateral value (X7), and the ratio of installments to income (X8). Based on the results of logistic regression analysis, it is known that the variables that affect the NPL of XYZ Bank’s consumer credit are gender (X1),), education (X4), occupation (X5), tenor / time period (X6), at a significant level of 10%.
The relationship between liquidation and banking industry stability has helped to sustain public confidence in the solvency of the bank. The purpose of this project work was to investigate the relationship between liquidation and banking industry stability in Nigeria. The study used quantitative time series data and special package for social sciences (SPSS) method during analysis. The result of the test indicates long run relationship between dependent and independent variables. The result of our analysis shows that there is long run relationship between the level of bank failure and stability of Nigerian banking industry. The study also found that efficient management of non-performing loan is necessary for the stability of Nigerian banking industry. The implication of this is that if the policy makers did not control the level of non-performing loan, it will continue to bring about bank failure. We therefore recommend that, there is an urgent need for effective monitoring of the level of bank failure in Nigeria to allow for acceleration of banking industry stability. This is necessary for its positive effect on the bank stability