NON-PERFORMING FINANCING RISK MANAGEMENT IN MURABAHAH AGREEMENTS AT BAITUL QIRADH ARAFAH SAVINGS AND LOAN COOPERATIVE, MATANGKULI SUBDISTRICT

Abstrak

The Sharia Financing Savings and Loan Cooperative (KSPPS) engages in various financial activities, including trade financing based on a Murabahah contract, which involves payments due at maturity. Such funding is inherently prone to risks, necessitating effective measures to manage Non-performing financing and maintain the financial stability of the cooperative through comprehensive risk management practices. This study examines the risk management strategies employed by the Baitul Qiradh Arafah Cooperative in addressing Non-performing Financing. The findings indicate that the cooperative's risk management approach includes a thorough evaluation of prospective customers' character and financial capacity, assessment of their financial conditions, adherence to the terms stipulated in financing agreements, evaluation of collateral requirements, identification of potential default risks, implementation of mitigation strategies, and consistent monitoring activities.