Banking Credit Grows To IDR 6,375 Trillion In February 2023, DPK Increases 8.18 Percent

Rupiah (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) said that bank credit in February 2023 was IDR 6,375.3 trillion. This amount grew 10.64 percent on an annual basis.

OJK Banking Supervision Chief Executive Dian Ediana Rae said the growth was higher than the growth in January 2023 which was 10.53 percent on an annual basis supported by investment credit growth of 13.01 percent on an annual basis.

"In a month-to-month manner, banking credit in February 2023 increased 1.02 percent, an increase of IDR 64.44 trillion," said Dian quoting Antara, Monday, March 3.

At the same time, banking Third Party Funds (DPK) also grew 8.18 percent on an annual basis or higher than 8.03 percent in January.

"DPK is recorded to be IDR 7,989 trillion with demand deposits and deposits as the main driver. In month to month, the DPK in February 2023 grew 0.44 percent, an increase of IDR 34.89 trillion," he said.

The composition of the DPK is dominated by CASA or low-cost funds which are relatively stable and not too affected by the movement of interest rates so as to support the maintenance of banking liquidity performance.

This is reflected in the ratio of banking liquidity which is still above the threshold or threshold, such as the ratio of Liquid Equipment to Non Core Deposit (AL/NCD) and Liquid Equipment to DPK (AL/DPK) in February 2023 of 129.58 percent and 29.0 percent, respectively, or far above the minimum threshold of 50 percent and 10 percent, respectively.

The Liquidity Coverage Ratio and Net Stable Funding Ratio (NSFR) in December 2022 were 244.20 percent and 140.42 percent, or above the threshold of 100 percent each.

Then the credit risk in February 2023 was maintained with the net banking Non Performing Loan (NPL) ratio reaching 0.75 percent or down from the January 2023 position of 0.76 percent.

On the other hand, COVID-19 restructuring credit in February 2023 continued to fall to IDR 427.70 trillion from the previous IDR 435.74 trillion with the number of debtors continuing to fall from two million to 1.93 million customers.

"On the capital side, the capital adequacy ratio (CAR) of the banking industry is quite high and strengthens to 26.1 percent in January 2023 and previously 25.88 percent," he said.