Case Study 1: Activity Analysis of Control for Micro Lending

Transcription

1 362 Business Intelligence Journal July THREE CASE STUDIES ON BANK NAGARI PADANG (INDONESIA) HEADQUARTERS AND MAIN BRANCH Heryanto, (PhD) Chief of RfD of the Chamber of Commerce and Industry; Professor of Mangement Science in Indonesia. Jalan Pemuda 21, Postbox 111, Padang 25117, West Sumatra, Indonesia. Case Study 1: Activity Analysis of Control for Micro Lending Abstract The purpose of this study was to determine whether control activities affect the provision of micro credit in Bank Nagari Pasar Raya Branch Padang. The object of this research is to control activities on the implementation of the provision of credit at PT. Regional Development Bank Pasar Raya Branch Padang, in particular regarding the use of documents, accounting records are used, the relevant organizational units and procedures for granting credit. Data was collected through secondary data. Logistic Regression data analysis technique was adopted for analysing. This study shows that the control activities (policies / procedures) has a significant influence on total micro-credit. Key words: Activity, Control, Micro Credit, Bank Nagari, Pasar Raya. The extension of credit is one of the very many services that attract people and become a mainstay of a bank. Because it is not surprising if some say is the heart of business loans bank. It is the people, whether individual or corporate / business groups are no doubt to borrow from banks, to meet all the necessities of life or accelerate the business. But sometimes reality does not match the expectations of the bank itself. Many banks in general have difficulty with the credit arrears, meaning that the money lent experience congestion in the billing (Sutarno, 2003: 2). With the risk assessment and control activities which are components of the internal control of credit security which will occur will be useful to minimize the risk - credit risk so that banks can overcome bad credit. Table 1 List Total Customer Bad Debt (Micro) On Bank agari Pasar Raya Branch Padang Year NYEAR No Type of Microcredit KMK Multipurpose KMK Multipurpose Longterm NYEAR No Type of Microcredit KUMK Sup KUKI KPUM Total Customer Source: Bank Nagari Padang Pasar Raya Branch Padang (processed data) Bank Nagari Padang Raya Pasar Branch provides services to customers, one of these services is the provision of credit in various facilities. Types of loans offered are Personal Loans and Credit Commercial that in this study the author focuses more on micro credit. With the aim to empower people economically weak or small business sector is to provide an affordable source of business financing. One of the financing strategy for this group is a micro-enterprise credit (Sabirin, 2007: 125). Business Intelligence Journal - July, 2011 Vol.4 No.2

2 2011 Heryanto 363 From table 1 above we can see that the Bank Nagari Padang Raya Pasar Branch has increased bad debts for the last 5 years. This is evident from the data obtained in 2009 showed that the number of customers have bad credit as many as 42 customers. The problem faced by the Bank is What control activities affect the provision of micro credit in Bank Nagari Raya Pasar Branch Padang? Referring to the problems mentioned above, then the goals will be achieved in this study is to determine whether control activities affect the provision of micro credit in Bank Nagari Raya Pasar Branch Padang. Based on the description above writer is interested to analyze the extent of control activities can affect the provision of credit, especially in micro-credit in Bank Nagari Raya Pasar Branch Padang. Literature Review Control Activities Definition of Control Activities According to Arens and Loebbecke (2000:295), Control Activities are the "Policies and procedures other than the four other components to help provide assurance that the actions which must be completely implemented in achieving the goals of the organization in question". According to the COSO (the Committee of the Sponsoring Organizations) reports, control activities must involve the entire staff of the Bank, including Directors. Therefore, control activities will be effective if planned and implemented in order to control the identified risks. Control activities include establishing policies and procedures for control and verification process early to ensure that policies and procedures are consistently adhered to, and is an integral activity of any functions or activities of daily Bank. As components of the control procedures in the internal control structure categories according to IAI is also an additional control procedures, control activities can be anything, but usually associated with one of the five general categories as follows: 1. Proper authorization of transactions and activities. 2. The existence of adequate segregation of duties. 3. The existence of adequate documentation and records. 4. The existence of adequate controls over access to and use of company assets and records. 5. The existence of checks on the performance conducted independently. Type of Management Control According to the COSO (the Committee of the Sponsoring Organizations) reports, management control systems can be divided into 5 (five) types: 1. Prevention control 2. Control detection 3. Control correction 4. Control direction 5. Control kompensatif Details of the above five types of control can be explained as follows: 1. Preventive controls Prevention controls intended to prevent the occurrence of a fault. Control is designed to prevent unwanted outcome before it happened. Control of prevention is effective when the function or personnel carrying out its role. Examples of preventive controls include: honesty, competent personnel, segregation of duties, reviews the regulatory and dual control. However, preventive controls can not guarantee no errors or iniquity, and other controls are still needed to complete it. 2. Detective controls As the name implies detection controls are intended to detect an error that has occurred. Reconciliation of bank balances on the books match the bank with the cash balance is the key organization book detection control over cash balances. Control of detection is usually more expensive than preventive controls, but still needed on the grounds: a. Control detection to measure the effectiveness of prevention. b. Some mistakes can not be effectively controlled through a system of preventive controls should be treated with the control of detection when the error occurred. 3. Corrective controls Corrective control the problems identified by the detection control. The goal is to make errors that have occurred do not happen again. Problems or errors can be detected by its own management or by auditors. If the problem or error is detected by the auditor, then the correction is a form of control in the form of follow-up implementation of auditor recommendations. 4. Directive controls Directive controls are carried out at the time of controlling the ongoing activity in order for the activities carried out in accordance with the policies or regulations. Examples Heryanto - Case Study 1: Activity Analysis of Control for Micro Lending on Bank Nagari Pasar Raya Branch Padang

3 364 Business Intelligence Journal July of this control is the supervisory activities undertaken directly by superiors to subordinates or supervision by the foreman of the workers' activity. 5. Compensating controls Conpensating controls intended to strengthen controls for neglect of a control activity. Direct supervision of business owners against their employees activities on small businesses because of lack of separation of functions is an example of kompensatif control. Understanding Micro Business Loan According to the definition used in the Microcredit Summit (1997) in Wijono (2005), Micro Credit is a "small amount lending program to the poor to finance productive activities which he did himself in order to generate income, allowing them to care for themselves and their families. " Grameen Banking (2003) defines micro-credit as the "Development of small amounts of loans to entrepreneurs who are too weak to qualify for access to loans from traditional banks. In granting loans to micro businesses conducted in stages. Starting from the stage of rescue (emergency), recovery (recovery), and development (development). However, in its development and then adapted to field conditions and in order to meet the demand for developed members of the fourth stage, named entrepreneur (entrepreneurial). Customers can not directly get a loan at this stage of the entrepreneur, but must go through the rescue, recovery, development, can the new entrepreneur. And that's to be seen installment notes and business development. Micro Business Lending Criteria Micro business loans are loans granted to businesses, where business has criteria for small businesses. Criteria for micro-enterprises and micro credit are: 1. Productive micro-enterprises are family-owned business or individual Indonesian citizen, the sale of at most Rp. 300,000, per year. 2. Micro-enterprise is a business that has a net worth of at most Rp. 50,000, not including land and building and has annual sales revenue of Rp. 300,000, (Law No.20 of Chapter IV of Article 6 of the micro, small, and medium) 3. Microcredit is lending under the USD. 50,000, (Definition of Bank Indonesia) 4. Micro-credit lending program amounted to little for the poorest citizens to finance projects that he is working on its own to generate income, allowing them to care for themselves and their families (Microcredit Summit 1997) Procedure Understanding Procedures Definition of procedure according to Mulyadi (2001: 5) that "A sequence of clerical activity, usually involving several people in one department or more, are made to ensure uniform handling corporate transactions that occur repeatedly." Related Functions In the procedures for granting credit for not centered only one part only, then formed several functions. These functions will coordinate with each other to achieve the goals set by the bank. The related functions include: 1. Secretariat functions, this function is responsible for the acceptance of credit application and mail notification. 2. Billing functions, this function is responsible for collection of accounts receivable directly to the debtor based on a list that will be billed receivables. 3. Cash function, this function is responsible for receiving and spending money. 4. Accounting Function, this function is responsible for cash receipts and disbursements, and organizing financial reports. 5. Internal Audit function, this function is responsible for checking the accuracy of cash records held by the accounting function. Documents Used Documents are the forms used to record the transactions. Documents used in the lending system (Mulyadi, 2001: 3) among others 1. Credit application form This form contains the writing ability of the borrower and the signature of the board (Kasubsi Credit) as proof of delivery that the loan application in accordance with demand and working conditions. Business Intelligence Journal - July, 2011 Vol.4 No.2

4 2011 Heryanto Receipt Made in triplicate receipt by the treasurer as proof of savings and loans have to spend money. 3. Evidence of cash Created as a proof of cash from the bank after the loan disbursement. 4. Evidence of cash receipts As proof of cash receipts from debtors when pay credit installments. 5. Credit card Credit card was made to record the loan installment every month. Accounting records Used Accounting records are all records relating to all accounting transactions that occur, such as journals, ledgers, ledger and financial statements. The accounting records used in credit delivery system, among others: 1. Public Journal Accounting records were used to record the reduction in accounts receivable from the elimination of transactions that are no longer collectible. 2. Cash Expenditure Journal Used to record the granting of loans and transactions, cash disbursements. 3. Cash Receipts Journal Cash receipts journal is used to record cash receipts from the return credit. 4. Card receivables To record the receivable balances to each debtor. Meanwhile, according Djumhana (2000: 394), a reference in the framework of analysis and research in getting the confidence that the debtor has a bankable classification, including 5C, 4P and 3R. 1. Character (the properties of the prospective borrower such as honesty, behavior danketaatannya), in order to obtain the data on the character of the debtor, the bank can do it by gathering information from other bank reference. Capital (capital), it is a concern in terms of this capital is about the large and capital structure, including the performance results from the capital itself from the company if the debtor is a company, and in terms of revenue if the debtor is an individual. 2. Capacity (ability), attention is given to the debtor that is concerning leadership abilities and performance within the company. 3. Collateral (collateral), namely the ability of borrowers to provide collateral which is good and has value both legally and economically. 4. Conditions of economy (economic conditions), ie the condition that is rapidly changing, now that his concern include government policy, political, social, cultural and other aspects that can affect the economic condition itself. 5. Personality or the personality of the debtor is a subjective aspects, but an important one in determining the provision of credit, and thus need to be collected the data on the prospective borrowers. 6. Purpose or objectives, which became the spotlight of this aspect that is concerning the intended use of the loan whether to use the activities that are consumptive or productive or used for activities that are or contain speculative elements. 7. Prospect or future financing of the activities that get the credit, while the elements that can be an assessment of the prospects are among the areas of business, business management, government policies and so forth. 8. Payment or method of payment, it is a concern for the example on the smooth flow of funds (cash flow). Return or reversal means that outcomes will be achieved from the activities that get the financing. 9. Repayment or refund calculation of activities that get financing or credit. 10. Risk Bearing Ability of the calculation of the ability of the debtor in the face of unexpected risk. Heryanto - Case Study 1: Activity Analysis of Control for Micro Lending on Bank Nagari Pasar Raya Branch Padang

5 366 Business Intelligence Journal July Figure 1: Implementation Procedures Lending Start Finish 4 Finish Note: The average time used is 21 working days Source: Faried Wijaya (1996: 288) Description: These steps can be identified by crediting see picture below lending procedures. 1. Contact the credit Applicants express intent Executing Bank orally. 2. Examine the application executing bank credit. 3. What is the executing bank's decision: 3.1 Rejecting the loan application 3.2 Process credit applications 4. Executing bank sends a rejection. 5. Bank executive to discuss the loan application from the applicant. 6. Executing bank approved the loan application. 7. Implementing the bank's decision notified to the customer. Procedures that form the network lending system, among others: 1. Credit application procedures: a. Applicant to contact the bank executive. b. Applicants fill out a credit application. 2. Application verification procedures: a. Credit application is inserted into the credits for verification. b. Investigated by officers of credit analysis. c. Head of Credit Department approval. 3. Rejection notification procedures: a. Credit analysis officer considers that the loan application is considered not feasible. b. Officers went to the credit applicant to notify the reason for rejection of credit. 4. The procedures for processing approval a. Part administrative type of credit slips. b. Requested verification of the credit administration staff. c. Requested authorization of directors and the Head. Marketing. d. Customers hand over the terms of the completeness of credit. e. Customer signed a loan agreement and supporting documents. 5. Credit disbursement procedures a. The terms of credit completeness investigated truth by the administration. b. The administration submitted the necessary documents to the cashier. c. Part cashier create and issue money receipt. d. Customer signed a loan receipt, accept the money and documents submitted. Review of Recent Research From the results of previous research conducted by Shahputra on the analysis of the internal control structure of the credit delivery system and return to the West Bank. When analyzing the existing internal control structure in West Bank, more discussion centered on the control environment and control activities undertaken by the Bank of West Kalimantan, especially in terms of granting and repayment of credit. From the analysis, the study revealed basically the West Bank has been implementing sound internal control structure in accordance with the guidelines COSO (the Committee of the Sponsoring Organizations), only difference may lie in the field. In this case seen some strengths and weaknesses of internal control processes that Business Intelligence Journal - July, 2011 Vol.4 No.2

6 2011 Heryanto 367 have been conducted by the West Bank, both in terms of the control environment and control activities. Relationship control activities with the provision of micro credit Control activity is the establishment of policies and procedures In addition to four other components of the dimadsudkan to help provide assurance that the actions which must be completely implemented in achieving the goals of the organization in question (Arens and Loebbecke, 2000: 295). Lending (credit) is one of very many services that attract people and become a mainstay of a bank.karena it is no wonder if some say business credit is the heart of this bank. Saat society, both individuals and corporate / business groups are no doubt to borrow from banks, to meet all the necessities of life or accelerate the business. Provision of micro credit loans are loans granted to businesses that are categorized middle class who meet the criteria. In lending these types of loans also establish procedures and policies set by the bank concerned. One component of the system of internal control is a control activity that contains the policies and procedures to provide reasonable assurance that corporate objectives will be achieved. Control activities aim to find the mistakes, but more aimed at the prevention and reduction of risk of error in order to improve the effectiveness of the company / bank, especially in the provision of credit. So that can reduce the risks that arise if there are arrears of credit or bad credit opportunities, the control activity has positive influence on provision of micro credit. Ha 1: Control activities have positive influence on the provision of micro credit. Method Research Sites The author conducted research at PT. Regional Development Bank Pasar Raya Padang Branch, located at 2nd Floor Market Plaza Koppas Raya Padang. Object of Study Study object is the object that be a focus of research. The authors focus the object of research on control activities on the implementation of the provision of credit at PT. Regional Development Bank Pasar Raya Padang Branch, in particular concerning: 1. Documents used 2. The accounting records used. 3. Unit-related organizations 4. Lending procedures Measurement Variables The variable is the object of research or something that becomes a focal point of research (Arikunto, 2002: 96). Variables are divided into two independent variables and dependent variable. Veriabel free (x) are the variables that influence and the dependent variable (y) is a variable that is affected. The variable in this study are: Activity Control (Y1) Control activities are policies and procedures other than the four other components that dimadsudkan to help provide assurance that the actions which must be completely implemented in achieving the goals of the organization concerned (Arens and Loebbecke, 2000: 295). Control activities are dependent variables where measurement is measured by indicators of policy / procedures for the provision of micro credit. To measure how important the influence of variable control activities in the provision of micro credit, so the writer took the data from changes in policies / procedures established by the bank in the last 5 years ie from 2005 to 2009 by the Bank Nagari Padang Raya Pasar Branch. Micro Business Lending (X1) Provision of micro credit loans are loans given to entrepreneurs who are categorized middle class who meet the criteria. In lending these types of loans also establish procedures and policies set by the bank concerned. The system of credit by the banking world in general inter-bank that one with the other banks are not much different. The difference may only be located from the enactment of procedures and requirements with their respective considerations. Lending procedures in general can be distinguished between personal loans with a loan by a legal entity. While in the provision of micro credit in Bank Nagari Padang Raya Pasar Branch intended as development loans to entrepreneurs in small quantities that are too weak qualifications to be able to access the loans from traditional banks. Provision of micro credit is an independent variable in which the measurement is taken from the total data Heryanto - Case Study 1: Activity Analysis of Control for Micro Lending on Bank Nagari Pasar Raya Branch Padang

7 368 Business Intelligence Journal July provided in micro-credit banks in the last 5 years and the data bank s asset quality in the last 5 years ie from 2005 until 2009 at Bank Nagari Padang Raya Pasar Branch. Data Collection Data used in this research is secondary data is the data obtained from the object of research. The data obtained from the documents concerning the micro-credit delivery system. Data Analysis Techniques The data analysis technique that is used as follows: Descriptive Analysis This analysis is a description or explanation by making the tables, organize and analyze data. Descriptive statistics to explain or describe the various characteristics of the data. This method is used to assess the variables that exist in this study may thus be known level of effectiveness of control activities in the provision of micro credit for the variable measuring credit control activities. In order to find the best model to be used in the study, the authors tested the hypothesis by Binary Logistic Regression. Data Analysis Techniques Binary Logistic Regression If pi declare an individual an opportunity to-i has a value of Y = 1, then the logistic regression model with k independent variables can be written as: logit ( pi) = β + β X + β X β o k X k (1) 1. The presence or absence of changes in policies / procedures established by the bank for each type of micro credit in the last 5 years. 2. What is the total disbursed microcredit bank for each type of credit in the last 5 years. 3. Data quality earning assets ratio (KAP) of banks in the last 5 years. The data above is that it can be viewed in the following table: Tabel 2 Data Perubahan Kebijakan/Prosedur dalam Pemberian Kredit Usaha Mikro Bank Nagari Cabang Pasar Raya Padang Dari Tahun No Jenis Kredit Usaha TAHUN Mikro KMK Multiguna KUMK Sup KUKI KPUM Sumber : Bank Nagari Cabang Pasar Raya Padang From table 2 above explained that there are 4 types of micro-credit disbursed by banks, namely: 1. KUMK Multifunction (Micro Business Loans Commercial Multipurpose) 2. KUMK Sup 005 (Micro Small Credit and Small Sup 005) 3. KUKI (Informal Small Business Credit) 4. KPUM (Micro Care Credit) Inside there are tables of probability value of each type of credit in 2005 until 2009, where 0 means no change in policy / procedure, while 1 means there are changes in policies / procedures. Logistic regression model is a linear model of logit (p) with explanatory variables X. Just as in linear regression, we can get the values of intercept and slope of the model. Analysis & Discussion Descriptive Analysis Data used in this study is micro credit data within the last 5 years ie from 2005 to 2009 on each type of microcredit, which is described in the data about: Business Intelligence Journal - July, 2011 Vol.4 No.2

8 2011 Heryanto 369 Tabel 3 Data Total Kredit Usaha Mikro Yang Disalurkan Pada Bank Nagari Cabang Pasar Raya Padang dari Tahun (dalam ribuan rupiah) No Jenis Kredit Usaha Mikro Tahun 2005 % 2006 % 2007 % 2008 % 2009 % 1 KMK Multiguna 354, , , , , KUMK Sup , , , , , KUKI , , , , KPUM , Total 605, , ,069, ,437, ,177, Sumber : Bank Nagari Cabang Pasar Raya Padang Furthermore, table 3 in explain that the total micro-credit on each credit type from 2005 to 2008 as a whole continued to increase in the distribution of credit, except in 2009 which decreased by Rp , - while the percentage increase that is in 2005 with a total microcredit Rp , - at 11.85%, in 2006 with a total microcredit Rp , - amounting to 15.97%, in 2007 with a total microcredit Rp. 1,069,005,000, - at 20.94%, in 2008 with a total microcredit Rp. 1,437,984,000, - at 28.17%, in 2009 with a total microcredit Rp. 1,177,250,000, - at 23.06%. Means it can be said that the provision of microcredit in the last 5 years at Bank Nagari Pasar Raya Branch Padang is good. Tabel 4 Data Kualitas Aktiva Produktif (KAP) Kredit Usaha Mikro Bank Nagari Pasar Raya Padang dari Tahun No Tahun Rasio KAP ,36 % ,37 % ,97 % ,53 % ,94 % From table 4 can be seen that the ratio of bank accounting firm from 2005 until 2008 continued to increase this, except in the year Because the bank's rating as stipulated by Bank Indonesia if the ratio of asset quality (KAP) is smaller than a health assessment criteria for banks that is equal to 10.35%, banks are categorized in the healthy group. So to say the Bank Nagari Pasar Raya Branch in the last 5 years is healthy. Thus, the data is processed above will produce how much influence the level of effectiveness of control activities conducted on the provision of micro credit in Bank Nagari Pasar Raya Branch in the last 5 years. Descriptive Statistics Descriptive statistics provide information about the data being processed is the number of samples, the minimum value, maximum value, mean value and standard deviation where the standard deviation is a deviation from the independent variable. Descriptive statistical results are presented in Table 5 below: Tabel 5 Hasil uji Statistik Deskriptif Descriptive Statistics N Minimum Maximum Mean Std. Deviation TKM KAP KP TKM KAP KP Valid N (listwise) 5 Descriptive statistical test results for 5 samples in the form of measurement is the average value of total microcredit (TKM) = with a standard deviation = lowest value of total micro-credit to 5 samples = and credit scores micro for 5 samples = This means the value of microcredit to total micro-credit per year on average for the sample of 5 years amounted to with a homogeneous size distribution (below the average value) that is equal to of 5 years that happened. The average value of the test results of descriptive statistics for the variable quality of productive assets ratio Heryanto - Case Study 1: Activity Analysis of Control for Micro Lending on Bank Nagari Pasar Raya Branch Padang

9 370 Business Intelligence Journal July (KAP) amounted to , the standard deviation of with the lowest score is and the highest value = This means earning assets to total earning assets by an average of with a homogeneous size distribution (below the average value) that is equal to of 5 years that happened. The average value of the test results of descriptive statistics for the probability variable policies / procedures amounted to , with standard deviation of , the lowest score is 0.00 and the highest score is This means an average probability of , with a homogeneous size distribution (below the average value) that is equal to from 5 years to happen. Partial Correlation Test Analysis In the hypothesis stated that there are significant control activities on micro lending means for each independent variable is the total micro-credit and asset quality (KAP) is influenced by control activities in the form of policies / procedures in the provision of micro credit itself. For that variable correlation table above will be explained by the following: Control Variables TKM KAP KP TKM Correlation Significance (2-tailed)..023 df 0 2 KAP Correlation Significance (2-tailed).023. df 2 0 The test results Binary Logistic Regression on SPSS output results can be seen from the table below: 1. Binary Logistic Regression Model Variables in the Equation B S.E. Wald df Sig. Exp(B) Step 1 a TKM Constant a. Variable(s) entered on step 1: TKM Results of testing the binary logistic regression model with dependent variable control activities in the form of policies / procedures (Y) obtained the following equation: Y + Y In( - = In( π 1-π ) = β0 β1x1 Where : π 1 π ) β 0 + β 1 X 1 = bound binary variable (Y = 1 and Y = 0) which indicates the variable control activities (policies / procedures) were coded 1 = no change and 0 = no change = Log odds = regression coefficient logit model = independent variable β = 1,546 0 β 1 = 4,825 X 1 = total micro-credit Based on the above analysis of the correlation table can be valued at significant variable is the total microlending micro-credit and asset quality (KAP) has a positive relation to control activities (policies / procedures). This means that in the presence of control activities (policies / procedures), the greater the total micro-credit banks, which are distributed and also the quality of productive assets (KAP), the bank will get better, so vice versa. While the result of a significant level of correlation coefficient of <0.05 sig which means the total micro-credit and asset quality (KAP) has a significant relationship to the activities of bank control. Binary Logistic Regression Analysis of Test Probability Influence Policy / Procedure to Total Micro Credit Jadi: Y 1-π Or = In( π ) = 1,546 Y - = ( π 1 π ) = 4, Accuracy Test Binary Logistic Regression Model Chi-square df Sig. Step 1 Step Block Model Step -2 Log likelihood Cox & Snell R Square Nagelkerke R Square a Business Intelligence Journal - July, 2011 Vol.4 No.2

10 2011 Heryanto 371 Step Chi-square df Sig From the above data can be output omnibus test states that the results of chi-square goodness of fit is 0.041, which means less than 0.05 indicates that Ho is rejected which means if a significant difference between control activities (policies / procedures) to total micro-credit disbursed by banks. The result of Cox and Snell R Square is the size of R2 in multiple regression based on likelihood estimation techniques with a maximum value of less than 1 so it is difficult to interpret. Nagelkerke R Square is a modification of the Cox and Snell coefficient to ensure that its value varies from 0 (zero) to one (one). This is done by dividing the value of Cox Snell R square with its maximum value. Nagelkerke R2 value can be interpreted as the value of R2 in multiple regression. Viewed from SPSS output with a value of Cox Snell R Square of and Nagelkerke R2 value is 0.801, which means the variability of control activities (policies / procedures) in the provision of credit that can be explained by the variability of total micro-credit amounting to 80.1% and the remaining 19.9% influenced by other variables outside the research model. While the results of the Hosmer and Lemeshow Goodness-of-Fit Test is a significance of which indicates that 0,029 <0.05 sig so that Ho is rejected which means a significant difference between control activities (policies / procedures) to the total micro-credit disbursed by banks. 2. Binary Logistic Coefficient Test Variables in the Equation B S.E. Wald df Sig. Exp(B) Step 1 a TKM Constant Dalam regresi logistik biner, uji t digantikan dengan uji Wald. Signifiknasi Wald dilaporkan dalam print out SPSS. Pada hasil di atas nilai Wald untuk variabel X (total kredit mikro) = 5,204 dengan signifiknasi 0,036 atau 3,6 %. Ini berarti kemungkinan menerima Ho sebesar 3,6 % dan kemungkinan menerima Ha sebesar 96,4 %. Bisa juga dikatakan pengaruh X terhadap variabel logistik Y signifikan pada α = 5 %. a. untuk koefisien variabel X (total kredit mikro): = B ) = (4,825/2,115) = 5,204., SE value = 0,036 lebih kecil dari α ( 2 2 = 0,05, maka koefisien regresi untuk variabel total kredit mikro signifikan. b. untuk constant : B = ( ) 2 = (-1,546/0,819) = 3,563. P - value = 0,042 lebih kecil dari α = 0,05, SE maka koefisien regresi untuk variabel constant signifikan. Jadi, dari penjelasan hasil pengolahan data di atas dapat disimpulkan bahwa variabel dependent yaitu kegiatan pengendalian (kebijakan/prosedur) mempunyai pengaruh yang signifikan terhadap variabel independent (total kredit mikro). In binary logistic regression, t test was replaced with a Wald test. Signifiknasi Wald reported in the SPSS printout. In the results above Wald value for the variable X (the total micro-credit) = to or 3.6% signifiknasi. This means the possibility of receiving 3.6% Ho and accept Ha likelihood of 96.4%. It could also be said the effect of X on Y logistics variables significant at α = 5%. a. coefficient for variable X (the total micro-credit): = 2 = (4.825 / 2.115) 2 = P-value = is smaller than α = 0.05, regression coefficient for the variable total microcredit significant. b. for constants: = 2 = ( / 0.819) = P-value = is smaller than α = 0.05, then the regression coefficients for significant variables constant. Thus, the explanation of data processing results can be concluded that the dependent variable ie control activities (policies / procedures) had a significant influence on the independent variables (total micro credit). Pengaruh Probability Kebijaksanaan/ Prosedur Terhadap Kualitas Aktiva Produktif (KAP) Hasil pengujian Regresi Logistik Biner pada hasil output SPSS dapat dilihat dari table berikut ini : 1. Model Regresi Logistik Biner Effect of Probability Policies / Procedures on the Quality of Productive Assets (KAP) Heryanto - Case Study 1: Activity Analysis of Control for Micro Lending on Bank Nagari Pasar Raya Branch Padang

11 372 Business Intelligence Journal July The test results Binary Logistic Regression on SPSS output results can be seen from the table below: 1. Binary Logistic Regression Model Variables in the Equation B S.E. Wald df Sig. Exp(B) Step 1 a KAP Constant a. Variable(s) entered on step 1: KAP Hasil pengujian model regresi binary logistic dengan variable dependen kegiatan pengendalian berupa kebijakan/ prosedur (Y) diperoleh persamaan sebagai berikut: Y + = In( π 1-π ) = β0 β1x1 Dimana: Y In Where: X1, X2,...Xk β0 + β1 = bound binary variable (Y = 1 and Y = 0) which indicates the variable control activities (policies / procedures) were coded 1 = no change and 0 = no change = Log odds β0 = β1 = X 1 So: = independent variable = regression coefficient logit model. = KAP (asset quality) Y = In = KAP Or Y In( - X π 1 π ) 1,X2, X3... Xk = variable terikat biner (Y = 1 dan Y = 0) yang menunjukkan variabel kegiatan pengendalian (kebijakan/prosedur) diberi kode 1 = ada perubahan dan 0 = tidak ada perubahan = Log odds = variabel bebas Y == exp( KAP) 2. Uji Ketepatan Model Regresi Logistik Biner Accuracy Test Binary Logistic Regression Model β 0 + β 1 β 0 = 43,750 β 1 = 9,385 = parameter koefisien regresi model logit. Chi-square df Sig. Step 1 Step Block Model X 1 = KAP (kualitas aktiva produktif) Jadi: Y = In( Atau π 1-π ) = 43, ,385 KAP Y = ( π ) = exp( 43, ,385KAP) 1-π Results of testing the binary logistic regression model with dependent variable control activities in the form of policies / procedures (Y) obtained the following equation: Y = In = β0 + β1x1 Step -2 Log likelihood Cox & Snell R Square Nagelkerke R Square a Step Chi-square df Sig Dari data diatas dapat dilihat output omnibus test menyatakan bahwa hasil uji chi-square goodness of fit yaitu 0,015 yang berarti lebih kecil dari 0,05 ini mengindikasikan bahwa Ho ditolak yang diartikan jika terdapat pengaruh yang signifikan antara kegiatan pengendalian (kebijakan/ prosedur) terhadap kualitas aktiva produktif (KAP) bank. Hasil Cox and Snell R Square merupakan ukuran R 2 pada multiple Regression yang didasarkan pada tehnik estimasi Likehood dengan nilai maksimum kurang dari 1 (satu) Business Intelligence Journal - July, 2011 Vol.4 No.2

12 2011 Heryanto 373 sehingga sulit diinterpretasikan. Nagelkerke R Square merupakan modifikasi dari koefisien cox and Snell untuk memastikan bahwa nilainya bervariasi dari 0 (nol) sampai dengan satu (satu). Hal ini dilakukan dengan cara membagi nilai Cox Snell R square dengan nilai maksimumnya. Nilai Nagelkerke R 2 dapat diinterpretasikan seperti nilai R 2 pada multiple Regression. Dilihat dari Output SPSS dengan nilai Cox Snell R Square sebesar 0,680 dan nilai Nagelkerke R 2 adalah 0,897 yang berarti variabilitas kegiatan pengendalian (kebijakan/prosedur) dalam pemberian kredit yang dapat dijelaskan oleh variabilitas kualitas aktiva produktif (KAP) sebesar 89,7 %. dan sisanya 10,3% dipengaruhi oleh variabel lainnya diluar model penelitian. Sedangkan hasil dari Hosmer and Lemeshow Goodness-of-Fit Test adalah signifikannya sebesar 0,045 yang mengindikasikan bahwa 0,045 < sig 0,05 sehingga Ho ditolak yang diartikan jika terdapat pengaruh yang signifikan antara kegiatan pengendalian (kebijakan/ prosedur) terhadap kualitas aktiva produktif (KAP) bank. From the above data can be output omnibus test states that the results of chi-square goodness of fit is 0.015, which means less than 0.05 indicates that Ho is rejected which means if a significant difference between control activities (policies / procedures) to quality productive assets (KAP) bank. The result of Cox and Snell R Square is the size of R2 in multiple regression based on likelihood estimation techniques with a maximum value of less than 1 (one) so it is difficult to interpret. Nagelkerke R Square is a modification of the Cox and Snell coefficient to ensure that its value varies from 0 (zero) to one (one). This is done by dividing the value of Cox Snell R square with its maximum value. Nagelkerke R2 value can be interpreted as the value of R2 in multiple regression. Viewed from SPSS output with a value of Cox Snell R Square of and Nagelkerke R2 value is 0.897, which means the variability of control activities (policies / procedures) in the provision of credit that can be explained by variability in the quality of productive assets (KAP) of 89.7%. and the rest 10,3% influenced by other variables outside the research model. While the results of the Hosmer and Lemeshow Goodness-of-Fit Test is a significance of which indicates that <0.05 sig so that Ho is rejected which means if a significant difference between control activities (policies / procedures) on the quality of productive assets (KAP) bank. 3. Uji Koefisien Logistik Biner Binary Logistic Coefficient Test Variables in the Equation B S.E. Wald df Sig. Exp(B) Step 1 a KAP Constant a. Variable(s) entered on step 1: KAP. Dalam regresi logistik biner, uji t digantikan dengan uji Wald. Signifiknasi Wald dilaporkan dalam print out SPSS. Pada hasil di atas nilai Wald untuk variabel X (KAP) = 5,210 dengan signifiknasi 0,042 atau 4,2 %. Ini berarti kemungkinan menerima Ho sebesar 4,2 % dan kemungkinan menerima Ha sebesar 95,8 %. Bisa juga dikatakan pengaruh X terhadap variabel logistik Y signifikan pada α = 5 %. a. untuk koefisien variabel X (total kredit mikro) : B = ( ) = (9,385/4,112) 2 = 5,204. P - value = 0,042 lebih kecil dari α SE 2 = 0,05, maka koefisien regresi untuk variabel KAP signifikan. b. untuk constant : B = ( ) 2 = (-43,750/21,586) = 4,107. P - value = 0,048 lebih kecil dari α = 0,05, SE maka koefisien regresi untuk variabel constant signifikan. Jadi, dari penjelasan hasil pengolahan data di atas dapat disimpulkan bahwa variabel dependent yaitu kegiatan pengendalian (kebijakan/prosedur) mempunyai pengaruh yang signifikan terhadap variabel independent (KAP). In binary logistic regression, t test was replaced with a Wald test. Signifiknasi Wald reported in the SPSS printout. In the results above Wald value for the variable X (KAP) = to or 4.2% signifiknasi. This means the possibility of receiving 4.2% Ho and accept Ha likelihood of 95.8%. It could also be said the effect of X on Y logistics variables significant at α = 5%. a. coefficient for variable X (the total micro-credit): = 2 = (9.385 / 4.112) 2 = P-value = is smaller than α = 0.05, regression coefficient for KAP variables significant. b. for constants: = 2 = ( / ) = P-value = is smaller than α = 0.05, then the regression coefficients for significant variables constant. Heryanto - Case Study 1: Activity Analysis of Control for Micro Lending on Bank Nagari Pasar Raya Branch Padang

13 374 Business Intelligence Journal July Thus, the explanation of data processing results can be concluded that the dependent variable ie control activities (policies / procedures) had a significant influence on independent variables (KAP). Conclusions & Suggestions Conclusion Based on the research and discussion on this research, it can be concluded as follows: 1. The existence of control activities conducted in the form of changes in policies / procedures in the provision of micro credit have a significant effect on total micro credit which the Bank Nagari Padang Raya Pasar Branch. Where the contribution of variability in control activities (policies / procedures) in the provision of credit that can be explained by the variability of total micro-credit amounting to 80.1% and the remaining 19.9% are influenced by other variables outside the research model. Meanwhile, if viewed from a significant level of coefficients in the test via t test or Wald test also called for the variable X (the total microcredit) = with signifiknasi or 3.6%, which means the possibility of receiving 3.6% Ho and accept Ha possibility amounted to 96.4%. It could also be said the effect of X on Y logistics variables significant at α = 5%, where Ho is denied the means to control activities (policies / procedures) significantly influence the total micro credit in Bank Nagari Padang Raya Pasar Branch. 2. The existence of control activities conducted in the form of changes in policies / procedures in the provision of micro credit have a significant effect on the quality of productive assets (KAP) which is in Bank Nagari Padang Raya Pasar Branch. Where the contribution of variability in control activities (policies / procedures) in the provision of credit that can be explained by the variability of KAP of 89.7% and the remaining 10.3% are influenced by other variables outside the research model. Meanwhile, if viewed from a significant level of coefficients in the test via t test or Wald test also called for the variable X (KAP) = with signifiknasi or 4.2%, which means the possibility of receiving 4.2% Ho and accept Ha possibility of 95, 8%. It could also be said the effect of X on Y logistics variables significant at α = 5%, where Ho is denied the means to control activities (policies / procedures) significantly influence the quality of productive assets (KAP) in Bank Nagari Padang Raya Pasar Branch. Suggestion In the banking activities of credit is one important activity for the bank and make a significant contribution, especially in micro, then based on discussions and observations of the author in Bank Nagari Padang Raya Pasar Branch there are a few suggestions to be conveyed, among others: 1. In this research shows that the presence of control activities that have a significant effect on the total provision of microcredit and quality of productive assets (KAP), Bank Nagari should further enhance control activities in micro-lending bank's financial performance for the better. 2. Improving control activities such as the precautionary (prudential banking) in micro-lending procedures because it is very important in the assessment of appropriate creditor to give credit to bad credit can be overcome by the bank. 3. Conducting traning (training) specifically to bank employees involved in micro credit delivery system of how to control activities that can run effectively is to increase understanding and skills of bank employees so that later will automatically improve the performance of the employees themselves. 4. Intense competition in the world of business including banking, then you should Bank Nagari innovations on the type of micro credit which will actually help people so that middle to lower economic growth, the better. 5. For other researchers who want to conduct similar research using a broader population so the results will be dipertangungjawabkan. References Anonim Grameen Banking for the Poor: Microcredit. Dalam org/ mcredit/index.html Anonim Undang-Undang Republik Indonesia No. 20 Tentang Usaha Mikro, Kecil, dan Menengah. Dalam Anonim Bono and Bobby Shriever Launch (RED) TM in the U.S. Dalam cosmoworld.com/product red.htm Pada 13 Juli 2009 Business Intelligence Journal - July, 2011 Vol.4 No.2

14 2011 Heryanto 375 Anonim Grameen Bank at A Glance. Dalam Pada 13 Juli 2009 Arikunto, Suharsimi (2002), Prosedur Penelitian: Suatu Pendekatan Praktek, Jakarta: Rineka Cipta Badan Pengkajian Ekonomi, Keuangan Dan Kerjasama Internasional. Departemen Keuangan Bank Indonesia, Data Statistik dan Indikator Moneter Indonesia, Berbagai edisi, BI, Jakarta Bank Indonesia Statistik Ekonomi - Keuangan Daerah Sumatera Barat. Januari 2006 Buku Pedoman Pengelolaan Kredit Mikro. Bank Nagari Cabang Pasar Raya, 2006 Djumhana, Muhamad Hukum Perbankan di Indonesia. Bandung : PT. Citra Aditya Bakti Ghozali, Imam Aplikasi Analisis Regresi Logistik Biner dengan Program SPSS. Semarang: Badan Penerbit Universitas Diponegoro Harfadila Shahputra, Analisis Struktur Pengendalian Intern Terhadap Sistem Pemberian dan Pengembalian Kredit Pada Bank Kalbar, Skripsi Sarjana, Fakultas Ekonomi, Universitas Islam Indonesia, Yogyakarta, 2005 H. Rachmat Firdaus, Drs., Msi & Aryanti, maya., Manajemen Perkreditan Bank Umum, Bandung: Alfabeta, 2003 Ikatan Akuntan Indonesia Standar Akuntansi Keuangan. Jakarta: Salemba Empat Kasmir ( 2004 ), Bank dan Lembaga Keuangan Lainnya, Edisi Keenam, Pinjaman yang Diberikan, PT Raja Grafindo Persada, Jakarta Malayu S. P. Hasibuan Dasar-Dasar Perbankan. Jakarta : Bumi Aksara Mulyadi Sistem Akuntansi. Universitas Gajah Mada. Yogyakarta : Salemba Empat Produk Kredit, 2006, PT. Bank Pembangunan Daerah Cabang Pasar Raya Padang Prosedur Pemberian Kredit, 2006, PT. Bank Pembangunan Daerah Cabang Pasar Raya Padang Republik Indonesia.1998.Undang-undang No.10 tahun 1998 Tentang Perubahan Undang-undang No.7 Tahun 1992 Tentang Perubahan Perbankan. Jakarta Rivai Veithzal dan Veithzal Permata Andria Credit Management Handbook. Bandung Sabirin, S Pemanfaatan Kredit Mikro untuk Mendorong Pertumbuhan Ekonomi Rakyat di dalam Era Otonomi Daerah. Orasi Ilmiah Lustrum IX Universitas Andalas, Padang, 13 September 2001 Suhardjono. Manajemen Pengkreditan: Usaha Kecil dan Menengah, Jogjakarta: UPP AMP YKPN, 2003 Sutarno, 2003, Aspek-Aspek Hukum Perkreditan Pada Bank, CV. Alfa Beta, Bandung Suyatno, Thomas Dasar-Dasar Perkreditan. Jakarta : PT. Gramedia Wijaya, Faried Perkreditan & Bank dan Lembaga-Lembaga Keuangan Kita. Edisi 1. Yogyakarta : BPFE Wijono, W Pemberdayaan Lembaga Keuangan Mikro Sebagai Salah Satu Pilar Sistim Keuangan Nasional: Upaya Konkrit Memutus Rantai Kemiskinan. Kajian EkonomiDan Keuangan (Edisi Khusus). Pusat Pengkajian Ekonomi Dan Keuangan nagari.com Case Study 2: Effect of Interest Rates to Credit Customers Delivered Abstract The purpose of this study was to analyze the influence of interest rates on credit extended to customers cookies in Bank Nagari Pasar Raya Branch. The research object is the Bank Nagari Pasar Raya Branch. Population is a customer using credit facility KUKI credit in Bank Nagari Pasar Raya branch. A sample is a customer using KUKI credit facility in Bank Nagari Pasar Raya branch. The sampling technique used is random random technique. The size of the sample of 100 people. The analysis technique used in the regression analysis. Simple regression model is significant; Y = x. KUKI lending is influenced by interest rates. This is evident from the calculated t test (7.672) and F-count (7143), which is larger than t-table (6.3137) and F-table (3.92) at level α = 5%. This regression model is good, because it looks great determinant coefficient that is 96%. This means that 96% independent variables / interest rate determine the dependent variables / credits KUKI Key words: KUKI, Interest Rate, Bank Nagari Pasar Raya Branch. Heryanto - Case Study 2: Effect of Interest Rates to Credit Customers Delivered

15 376 Business Intelligence Journal July The Bank is a business entity which collects funds from the public in the form of deposits and distribute to the public in the form of credit in order to improve the standard of living of the people. Through its lending activities and the various services provided by banks and finance minister launched a payment system mechanism for all economic factors. The main activities of banking by Sri Susilo (2000) is collecting funds from people with excess funds and channel these funds back in the form of loans to people who lack the funds, so banks occupy a strategic position in the development and economy of the country and the distribution of income within society. In Indonesia there has long been serving the community banks on economic class, middle, bottom or small communities. The Bank is a very important institution to help improve the welfare and socio-economic improvement of economically middle class society. One type of banks that provide credit services to the community is Bank Nagari. As a financial institution operating in West Sumatra, Bank Nagari required to take an active role improving the economic sector in West Sumatra in order to perform its function as an intermediary institution. In addition, Bank Nagari is also challenged to be able to grow and develop naturally with intense competition. Economic situation in Indonesia is currently a highly competitive and uncertain conditions that lead to commercial banks race to increase the bank's funding sources which is then channeled back in the form of credit. Bank Nagari as a bank owned by the community of West Sumatra are expected to play an active role improving the economic sector in West Sumatra. To meet these demands, one of the efforts of Bank Nagari is to help overcome the problems faced by the capital of West Sumatra Micro to distribute credit in the form of Informal Small Business Loans are abbreviated with the cookies to the perpetrators of Micro. KUKI are given in the form of investment loans and working capital loans. Raya Pasar Branch of Bank Nagari one branch that operates class A market center field that gave credit KUKI. From the bank's annual report illustrated that the number of loans in the last 5-year period showed an increase, it can be seen from the table following the growth of total credit: Table 1 Development of Informal and Small Business Loan Interest Rate Period of 2004 s / d in 2009 Bank Nagari Pasar Raya Branch Year Credit KUKI which is distributed (Thousand Rp) KUKI Loan Interest Rate % Credit Improvement (Thousan % Rp) % % % % % Source : Bank Nagari Pasar Raya Branch From the above table can be seen the number of loans granted from 2004 until 2007, there was improvement. In 2004 the number of credits that can be channeled Rp million in 2005-then the amount of loans amounting to Rp means an increase of Rp , - a rise of %. If compared to 2006 the amount of loans amounting to Rp. 1,211,062,700-an increase of 43.59% from the previous. In 2007 the amount of loans amounting to Rp billion, up by Rp , - an increase of 51.07% from In 2008 the amount of loans amounting to Rp. 1, Or a decline in lending cookies by 5:44%. And finally in 2009 the credit can be channeled Rp or decreased by USD When compared to the previous year occurred 5 times from the previous / decreased by 25.43%. From the data in Table 1 above shows that interest rates tend to decline, the number of loans disbursed tend to decline KUKI. This condition is clearly contrary to the law of demand, where interest rates declined, on the contrary the number of credits required KUKI should be increased. This would seem the paradox of the KUKI products of Bank Nagari. For it is a problem in this research is how much influence the interest rate on credit extended to customers KUKI? Literature Review Credit Business Intelligence Journal - July, 2011 Vol.4 No.2 According Rahmi (2005) states that a significant influence between interest rates on lending branch in Simpang Four Bank Nagari West Pasaman. Lending also consider the principles of lending that the banks really get a conviction that the credit to be disbursed is really going back with interest.

16 2011 Heryanto 377 The principle is often used by the bank that is the concept of 5C (Sinungun: 1991) as follows: 1. Character; an assessment concerning the debtor's attitude about the willingness and responsibility for any liability that had been promised. 2. Capacity: a description of the ability of debtors to seek gain or profit from business that was involved so it can pay all the liabilities. 3. Capital: amount of funds / equity capital owned by prospective borrowers. Capital directed at the debtor's financial condition, especially in terms of liquidity, solvency and profitability as well as comparison of all debtors with debt capital. 4. Collateral; concerning the value of property pledged as collateral by the debtor as collateral for the credit application. 5. Condition of the economy; the conditions that affect the state of the economy of a country. This will affect the ability of business borrowers in the face of economic fluctuations and the business still has a prospect for a loan is still enjoyed by the debtor. Interest Flowers are important for banks in the withdrawal of savings and credit disbursement. Withdrawal of savings and loans are always associated with its interest rate. Flowers for banks could be a cost to be paid to depositors, but on the other hand, interest may also be the revenue received from the debtor's bank due to bank loans The smoothness of the credit repayment is also determined from the large and small flowers given to customers. The calculation of loan interest charged by the bank on its customers to follow a number of ways. According to cashmere (1998) there are 3 methods of calculation are used: 1. Sliding rate; the imposition of interest each month is calculated from its lending services so that the amount of interest paid each month the customer declines with the decline in loan principal. But the principal payment each month equal, customers installments (principal plus interest) automatically from month to month decreases. 2. Rate plate; loading fixed interest every month than the amount of the loan, as well as the loan principal each month are also to be paid the same, so that equal monthly installments until the loan is paid off. 3. Flooting Rate; this type of interest charge associated with money market rates existing in the amount of interest paid can be higher or lower than bersangkutan. Bunga months of credit is an a Contra Achievements on the transfer of money that is returned from the customer service / borrowers of loans granted by banks. Credit interest rate charged to debtors is influenced by various factors as follows: 1. Government policy; for loan rates and deposit rates set by the bank may not exceed the interest rate set by the government. 2. Target desired profit; if large profits to be achieved then the interest rate established by also getting larger and vice versa. 3. Duration: the longer the loan term the higher the interest rate, this is due to the risk of loss in the future. And vice versa shorter loan period then the interest rate is relatively lower. 4. Competition; in getting the deposit of funds in addition to the promotion of factors, most notably the banks should pay attention to competition. In a sense if you need quick funds should be raised above deposit interest rate competition, and if you want to do the credit expansion can be cultivated with melakukam decline in lending rates. 5. Quality assurance; more liquid collateral given the lower the loan interest charged to borrowers and increasingly illiquid collateral given the greater the loan interest charged. The reason is related to the disbursement of a loan guarantee if problematic. Guarantee a liquid such as certificates of deposit or checking account will be easier for thawed compared with land security. 6. Third party guarantees; in this case those who give a guarantee to loan recipients. Usually if the party providing bona fide loans, both in terms of ability to pay, good name and his loyalty to the bank then the interest rate set is also different. 7. Rapport; usually classify bank customers among the major customers (primary) and regular customers (secondary). This classification is based on the activeness and customer loyalty related to the bank. Main Customers usually have a good relationship with the bank so that in determining the interest rate is also different from regular customers. 8. Corporate reputation; bonafides of a company that will obtain credit so that will determine the interest rate charged. Because the company is usually a bona fide risk of potential bad debts in the future are relatively smaller and vice versa. Heryanto - Case Study 2: Effect of Interest Rates to Credit Customers Delivered

17 378 Business Intelligence Journal July 9. Competitive products, meaning products that will be funded is selling products on the market. To obtain competitive mortgage interest charges are relatively modest compared to the products less competitive. 10. Funding requirements; if banks short of funds, while loans increased pemohom then made by the bank for these funds can be met is by increasing savings rates. However, if the funds are much less then the loan application while deposit interest rates will fall. Method Research Object The research object is the Bank Nagari Pasar Raya branch. This bank is located in an easily accessible location and surrounded by traditional traders. In addition, this bank is a pretty good development banks in West Sumatra. Operational Definition There are two variables used in this study are: Independent variables ie Interest Rate (X). Interest Rate is the weight given by banks to customers who borrow in the amount of money. Dependent Variable Lending ie (Y). Credit is: an agreement between a lending institution or bank legal entity with another party that requires the borrower to repay the debt after a certain period with the amount of interest that have been promised. Population, Sample & Data Collection Population and Sample Population is a customer using credit facility KUKI in Bank Nagari Pasar Raya branch. A sample is a customer using credit facility KUKI ini Bank Nagari Pasar Raya branch. The sampling technique used is random random technique. To select respondents used the method of random sample, and to determine the sample size of a population was used Slovin formula approach quoted by Umar (1997) as follows: N n = 1+ Ne where, n = sample size, N = population size, e = Percent leeway carefully situations lack of sampling error can still be tolerated in this study, population size, N = 140, percentage; e = 5%. So the number of samples taken in this research is 140 n = 100people (0.05) = then based on the results above, the sample size of 100 people. Types and Sources of Data Data used in this study: a. Primary Data Primary data is data obtained directly from respondents, through questionnaires at random. b. Secondary data Secondary data is data obtained through the publication. Technical analysis The analysis technique used in the regression analysis. This analysis is used to measure the effect of interest rates on loans extended to customers of Bank Nagari Kingdom Market Branch. Form formula that is used as follows: y = Distribution Cookies a = constant Numbers b = coefficient x = Interest Rate y = a + bx Research Results & Discussion Profile of Respondents Demographics of Respondents The data was collected by giving questioner to the respondent directly without using the postal service. The number of questionnaires that have been deployed as many as 100 questionnaires. Of the total questionnaires were returned questionnaires that all that is 100%. Business Intelligence Journal - July, 2011 Vol.4 No.2

18 2011 Heryanto 379 Table 2 Questionnaire Distribution and Return Rate Questionnaire distributed Questionnaires returned 100 sheets 100 sheets The questionnaire did not return 0 Rate of return 100% Total questionnaires that can be processed Source: questionnaire prepared 100 sheets Respondents who used the study sample is the customer who become customers of cookies that can be sorted by age, gender and occupation. This can be described in tables 3, 4 and Table 5. Table 3 Tabulation of Respondents by Age Information Total Persentage Age years 16 people 16 % Age years 60 people 60 % Age years 20 people 20 % Age> 40 years 4 people 4 % Source: questionnaire prepared The table above the age of respondents is dominated by customers between the ages of years of age with the percentage of 60%. Customer age range years with a percentage of 20%. And is followed by year-old customer by 16%. The lowest percentages are found in the customer who was 40 years old and over 4%. Table 4 Tabulation of Respondents by Gender Information Total Persentage Male 75 people 75 % Female 25 people 25 % Source: questionnaire prepared Furthermore, table 4 above the dominant gender is male that is equal to 75% (75 people), while female customers as much as 25% (25 people). Table 5 Tabulation of Respondents Based Work Information Total Persentage Textile Merchants 20 people 20 % P & D Traders 70 people 70 % Draper 10 people 10 % Source: questionnaire prepared Table 5 above shows that customers work more dominant is the trader P & D that is equal to 70%. While ranking second and third of the jobs customers are in the work of textile traders and merchants Apparel. Customer Perceptions on Interest Rate and Loan Disbursement Interest Rate Based on questions asked to customers who take the credit cookies through the questionnaire, it appears that the interest rate on bank holiday village markets lower branches from other banks. The majority of Bank Nagari Pasar Raya branch customer feel strongly agree, except that there are also a feeling of agree, undecided and disagree. Customer KUKI on Bank Nagari Pasar Raya branch was also there who feel really strongly disagree, although only a small part. For the moment can be estimated that customers KUKI of Bank Nagari Padang Raya branch could more agree if interest rates affect the proposed credit. Loan disbursement Before customers apply for credit, banks will always do the assessment themselves in terms of the ability of our customers seek. Customers always pay off the loan at the due date of payment. Bank to audit the financial statements of the business customer. Goods must be given assurances of credit has been received. Customers in the proposed credit will have an exemption if the customer's business prospects are very good. Because of national economic conditions that are less good, the bank always assess the price of goods provided collateral on loans diterima.bank the classification of customers as prospective borrowers into a classification based on the capital, loyalty and character in a different get credit facilities from banks, both in terms of amount of interest and requirements. Loans and advances by the bank to provide benefit to the customer. Guarantee that customers do not give the desired affect of the credit. The majority of bank customers Nagari supermarket branches feel strongly agree, except that there are also a feeling of agree, undecided and disagree. Customer cookies on supermarket branch of Bank Nagari was also there who feel really strongly disagree, although only a small part. For the moment can be estimated that customers of Bank Nagari cookies in Padang Raya Pasar Branch could not agree if there is an assessment of credit application made by customers KUKI. Heryanto - Case Study 2: Effect of Interest Rates to Credit Customers Delivered

19 380 Business Intelligence Journal July Research Results Simple Regression Research on effects of interest rate on loans to customers of Bank Nagari Padang Raya Branch using simple linear regression model as follows: Y = x t-count = ( ) ( ) r = rscuare = Adjusted rscuare = independent variables / interest rate determine the credits KUKI. Conclusion KUKI lending is influenced by interest rates. It means lending KUKI credit will increase if interest rates also increase and vice versa. As soon as the amount of working capital loans KUKI has increased from year to year. Although mortgage interest rates rise, customers are still using credit facilities provided. References From the calculation it can be in the know the influence of interest rates on loans to the Bank Nagari Raya Pasar Branch. Obtained a constant value of which shows changes in KUKI credits amounting to 21,784 which is caused by other factors. The coefficient of interest rate loan obtained for 0385, meaning that any increase in interest rates (X) of 1% will increase lending (Y) equal to 0384%. Here we can see that the relationship is directly proportional (Positive) where the decrease of credit interest rate, then a reduction in lending experiences with Bank Nagari Pasar Raya branch. Simple regression model is significant. This is evident from the calculated t test (7.672) and F-count (7143), which is larger than t-table (6.3137) and F-table (3.92) at level α = 5%. This regression model is good, because it looks great determinant coefficient that is 96%. This means that 96% Hasibuan, Melayu S. P, 2002, Dasar-Dasar Perbankan, PT. Bumi Aksara, Cetakan Kedua: Jakarta Kasmir, 2003, Bank dan Lembaga Keuangan Lainnya, PT. Raja Grafindo Persada, Edisi Revisi: Jakarta Supranto, J 2001, Statistik Teori dan Aplikasi, PT. Penerbit Erlangga, Jilid Dua: Jakarta Suyatno, Thomas, 1993, Kelembagaan Perbankan, PT, Gramedia Pustaka Utama, Edisi Pertama: Jakarta Suyatno, Thomas, 1994, Kelembagaan Perbankan, PT. Gramedia Pustaka Utama, Edisi Kedua: Jakarta Suyatno, Thomas, 1993, Dasar-Dasar Perbankan, PT. Gramedia Pustaka Utama, Edisi Pertama: Jakarta UU. Perbankan 1967, Tentang Perbankan, PT. Sinar Grafika: Jakarta UU, Perbankan No. 7, tahun 1992, Tentang Perbankan PT. Sinar Grafika: Jakarta Case Study 3: Effect of Service Quality on Customer Satisfaction With Bank Nagari Branch Main Padang Abstract The objectives of the research are to know an influence of service quality to customer satisfaction on Main Branch of Bank Nagari, Padang. The population size amount saving customer. The sample size amount 100 saving customers. Collecting data through questionnaire with using the accidental technique of random sampling. Data analysis technique is used consisted of simple regression. The study shows that there was an influence of service quality to customer satisfaction significantly. Service quality are very important consisted easily in opening account, quick and on the right time, to give the right service, commitment, staff available, polite, campentency and capability, complaint solusion, customer attention, complete facility, and staff performance.. Meanwhile service quality are important consisted of accurate, relax in taking compliance, customer need and modern facility. Key words: Quality, Service, Satisfaction & Customer. Business Intelligence Journal - July, 2011 Vol.4 No.2

20 2011 Heryanto 381 The development and improvement in banking services from year to year is a concern of society. This can be seen increasing competition in service quality in banking. Quality of care is a top priority in creating customer satisfaction. In accordance with the bank functions as a collection of public funds, Bank Nagari in this case has the kind of product that can compete with other bank products. For this type of savings Bank Nagari have some type of savings among Simpeda Savings, Savings Tabanas, Savings and Savings Haji Sikoci Mabrur sun. With these facilities is expected to attract people to save their money in Bank Nagari, and improve service to customers. The better the service provided will have an impact both on customer satisfaction of products offered. These services include the reliability and responsiveness of Bank staff in addressing customer issues, customer friendliness and menghilanghkan ignorance of the product or service they want. In this research, the problem is how the influence of service quality to customer satisfaction at the Main Branch of Bank Nagari Padang?. Besides increasing the number of bank customers there are things that also must be considered by the Bank Nagari in improving customer satisfaction among which accommodate and respond to complaints submitted by the customer. Usually the complaints that frequently arise are complaints against the service and delays in transactions. The purpose of this study is to determine the effect of service quality to customer satisfaction at the Main Branch of Bank Nagari Padang. Literature Review Understanding services One trend is happening today is the growth of service sector is so fast and rapidly. Many business opportunities are engaged in services like insurance, hotels, hospitals, education, transport and banking. Service is an act or acts, the performance of appearance, intangible and quickly disappear only to be consumed, can be felt but not owned in which customers can participate actively in the process of consuming these services. Definition of services according to Kotler (2002), service is any act or activity that can be offered by one other party, essentially intangible and does not result in any ownership. Zeithalm (2000), service is all economic activities with output than products in the physical sense, consumed and produced at the same time, provide valueadded and intangible principle for the buyer first. Payne (2001: 8) service is an activity which has some elements ketakberwujudan (intangible) associated with it, which involves some interaction with customers or with property in its ownership, and does not produce a transfer of ownership. Changes in conditions may occur and the production of services may be related or not is also related to the physical product. Tjiptono (2001: 6) services are intangible goods (intangible) that is an act, performance (performance) or business and can only be consumed but not owned, meaning can be seen, felt, kissed, heard, or touched before purchase. So, services are activities, benefits or satisfaction offered for sale. focus in the process of service is to provide the results (benefits) that meet and or exceed the needs, desires, and expectations of customers. Dimenesi Services According to Parasuraman et al (1994) there are five main dimensions that have been aggregated, used to assess the quality of service or service provider companies, including: a. Reliability (reliability) An ability to provide the desired services with accuracy and credibility and reliability. In other words, reliability means the extent to which the provision of services to provide what has been promised to consumers. b. Responsiveness (responsiveness) A policy to assist and provide fast service to customers. This dimension emphasizes the attitude of providing a caring service, fast, precise in dealing with requests, questions, complaints, and consumer issues. c. Assurance / certainty (assurance) The knowledge and friendliness of employees and the ability to perform tasks that can spontaneously guarantee good performance, giving rise to the trust and confidence of customers. d. Empathy (empathy) Giving individual attention to customers and seeks to understand the consumer. e. Tangible (tangibles) Appearance and physical infrastructure capabilities that can be relied upon. Heryanto - Case Study 3: Effect of Service Quality on Customer Satisfaction With Bank Nagari Branch Main Padang