PRINCIPLES OF CHARACTER, CAPITAL, COLLATERAL, CAPACITY, AND CONDITION ON MURABAHAH FINANCING RISK

Abstract

The purpose of this study is to determine the principles of Character, Capital, Collateral, Capacity, and Condition on the risk of murabahah financing, this research method is qualitative with descriptive analysis of the source of this research data is the publication of journals, books, newspapers and other international journals related to the principles of Character, Capital, Collateral, Capacity, and Conditions on the risk of murabahah financing. The result of this study is that character is a dominant factor because even though prospective financing customers are capable enough to settle their debts, if they do not have good intentions, it will certainly bring various difficulties to financial institutions that provide financing in the future. The assessment of the amount of own capital is important, considering that bank financing is only an additional financing. The creditor will usually not be willing to provide full financing for the financing application submitted by the prospective debtor. Assessment in this aspect includes an assessment of the guarantee provided by the debtor as a security for financing provided by the bank. The financing agreement is to pay off the principal and margin in accordance with the terms and conditions mutually agreed. In assessing this aspect, economic conditions should also be assessed now and for the future according to their respective sectors.