Effect of Internal Control Effectiveness on Prevention of Bad Debt (Case Studies on Several Bank Rakyat Indonesia Persero Units Bandung City)

Abstract

The purpose of this study is to determine whether the internal control in the provision of
Kredit Usaha Rakyat (KUR) was optimal so that it could minimize bad debt at BRI banks.
The research method used is descriptive quantitative method. The sampling technique used in
this study is nonprobability sampling, namely saturated sampling. The number of samples in
this study were 30 employees related to credit. The statistical test used is the analysis of the
Pearson correlation coefficient, the coefficient of determination, and the t test. The results
showed that internal control was effective and categorized as good, prevention of bad credit
had been done and categorized as good, internal control had an effect on preventing bad
debt.