The Competition and Regulation Are Challenges for Rurals Banks

1Maria Widyastuti, Y Budi Hermanto, Lusy

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Abstract:

This type of descriptive qualitative research, which aims to find out and analyze how Rurals Banks (Rurals Bank) who face challenges in the form of competition from non-bank financial institutions and commercial banks engaged in micro and Financial Services Authority Regulation (POJK) No 5 / POJK.03 / 2015 regarding the requirement for minimum capital supply. Respondents from the study were Managing Directors of Rurals Bank from four districts and cities, namely: Sidoarjo, Krian, Gresik and Surabaya. The results of in-depth interviews are known, in the face of challenges used: 1) branding strategies to build a positive image; 2) institutional strengthening and internal reform through: overcoming capital through mergers or inviting new investors; improve governance because success does not depend on the size of the business but depends on the speed in anticipating change; improve the quality of human resources with integrity where thoughts and speech must be the same, and the last to make products and services that are more varied, Ninety-nine percent are the same as competitors but one percent must be different from looking at niche markets.

Keywords:

Competition, Regulation, Challenges, Rurals Banks (BPR)

Paper Details
Month5
Year2020
Volume24
IssueIssue 8
Pages7642-7651