Mudharabah Financing Risk Management in Sharia Banking in Indonesia

Abstract

Financing risk management is an analysis process carried out by financial institutions to assess whether a customer is worthy of being provided with financing. Financing problems occur when the bank has distributed the financing, but the customer does not make payments according to the contract. This article aims to find out how to implement mudharabah financing risk management in banking in Indonesia. The research results show that implementing mudharabah financing risk management in sharia banking was carried out before the financing occurred. Two factors cause the risk of mudharabah financing, internal factors originating from the bank which are then minimized through analyzing the feasibility of prospective customers' financing applications by applying the 5C (Character, Capacity, Capital, Collateral, Condition of Economy) character analysis, namely: character, capability, capital, collateral and economic conditions. External factors come from the customers themselves, which are then resolved with 3R (Rescheduling, Reconditioning and Restructuring) for customers who still have good faith. However, customers who do not have good faith will be subject to the execution of the goods used as collateral. If the customer cannot pay due to force majeure, then the solution is through insurance.