LOCAL GOVERNMENT POLICY STRATEGY OF NON-BANK MICROFINANCE INSTITUTIONS: CASE STUDY IN BANDUNG REGENCY

Abstract

This study aims to determine the policies required by Local Government of Bandung Regency to raise capital, market segments and minimize the risk of Non-Bank microfinance Institutions. Object of this study is the Non-Bank Microfinance Institutions in Bandung District. Secondary data and documentation that related to variables were used to be analyzed in this qualitative research. The results showed that the local government needs to steer policy strategy on strengthening capital Non Bank Microfinance Institutions through linkage with Credit Unions and Savings and Loans Cooperative Enterprises and Ventura Capital. Local governments need to steer policies strategy direction at various preparations of Non Bank Microfinance Institutions towards eligibility for the five aspects of supervision of financial institutions by the Government, so that the implementation of financial institutions to be more prudent and professional.