JEFMS Journal

ABSTRACT:

This study aims to analyze the role of internal audit in minimizing non-performing loans. The location is at PT. Bank Rakyat Indonesia Lumajang Branch Office. Using a descriptive research approach, it was found that: first, internal audit plays an important role in minimizing non-performing loans by providing assessments, recommendations and improvements to the non-performing credit process. Thus, the non-performing credit process can be more convincing, because it has gone through several stages of auditing; Second, the role of internal audit in minimizing non-performing loans is quite effective. This can be indicated by the non-performing loan ratio at the end of 2021 reaching 5.00% in accordance with applicable regulations.

KEYWORDS:

internal audit, non-performing loans

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