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ABSTRACTThis thesis will discuss the Board of Bank Responsibility as the managing committee in
the banking industry, specifically in the crcdit distribution. Banking has an important role
in the national economic development, that is to accumulate and allocate fund used to run
the micro and macro economy. In carrying out the role, banking experienced problems.
The biggest problem faced is credit. This problem becomes even complicated with lots of
discharge liabilities (insolvent) happened in banking. And it will turn into a serious
matter since insolvent can affect the economics affair in banking. Moreover insolvent can
also be the main factor of bank liquidation. For this reason, banking as the most regulated
industry, needs to strictly control the business, especially in its credit. In distributing
credits, banking ought to be very cautious and correctly implement the right management
risk Such action needs a long time to carry out, but at the same time banking has to move
fast in their economic growth. This is a dilemmatic situation for the board of director.
Bank of Indonesia as the comptroller and regulator in banking, needs to regularly controls
and regulates the banking business and every action taken by the management especially
in credit distribution. This research is a juridical normative pattern research. The result of
the research will suggest Bank of Indonesia, as the one that constitute the regulation, to
strictly implement the banking regulation in Indonesia, especially in distributing banking
credits. The board of director needs to correctly enforce the Good Corporate Governance
to avoid the responsibility of loss caused by insolvent."
