<![CDATA[This study investigates the internal operational determinants of Non-Performing Loan (NPL) formation at BPR Papua Mandiri Makmur (BPR PMM), focusing on Account Officer (AO) competence, monitoring discipline, and SOP implementation. A qualitative case study design was employed. Data were collected through semi-structured interviews with ten internal respondents and four external practitioners, with thematic analysis applied across all transcripts. Three interconnected failure layers were identified: origination competence gaps (collateral over-weighting, omset inflation), reactive monitoring architecture (no risk-differentiated protocol or visit log), and SOP governance failures (normalized incomplete-file disbursement, incentive misalignment). This study extends Human Capital Theory, Credit Supervision Theory, and Internal Control Theory to the specific context of a remote rural bank in eastern Indonesia, contributing process-level evidence on how operational weaknesses interact to produce NPL outcomes. Rural bank credit risk; Account Officer judgment; loan monitoring architecture; SOP governance; internal determinants of default; qualitative case study.]]>
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