LPS Chair Make Sure The Fall Of SVB And Signature Bank Has No Impact Directly On National Banking
JAKARTA - Chairman of the Board of Commissioners of the Deposit Insurance Corporation, Purbaya Yudhi Sadewa, confirmed that the recent fall of Silicon Valley Bank (SVB) and Signature Bank in the United States did not cause a domino effect on banks in Indonesia.
"We are always watching every development, both national and international banking, so when we heard the news, we immediately conducted an investigation regarding its influence on banks in Indonesia, the results of the immediate impact were relatively non-existent," he told the media, Thursday, March 16.
He explained, as long as Indonesia maintains domestic policies properly, national banking will remain safe and its stability will be maintained.
Meanwhile, the thing that underlies this is, in terms of asset portfolios, none of the banks in Indonesia have characteristics such as SVB which has a very large securities portfolio. In addition to the most important thing is, the national banking capital level is still very thick and is at 25.93% as of January 2023.
The current banking liquidity condition is also in a very adequate condition. Liquid/non-core deposit or AL/NCD equipment and third party or AL/DPK funds as of January 2023 were 129.64 percent and 29.13 percent, respectively. This value is about two and a half times above the threshold, "he explained.
Then, he stated that in 2023 there is no problem bank, coupled with appropriate monetary policy and LPS which does not increase interest significantly.
"This means that domestic financial and banking stability is maintained to continue to grow. Although there is still global uncertainty, as long as our policies are good and continue to maintain domestic demand, our economy can still grow," he said.
It is known, in the midst of external pressure and potential recession in several developed countries, Indonesia's economy can grow well. In 2022, Indonesia was able to grow impressively by 5.31 percent.
Indonesia's economic resilience is supported by the large amount of domestic consumption. Large domestic consumption causes shocks that occur at the global level to be suppressed by the solid domestic economy. This domestic consumption contributes 52.81 percent of GDP Quarter IV 2022.
Purbaya also revealed that the synergy and collaboration between members of the Financial System Stability Committee (KSSK) continues to run very well to support the Indonesian economy continues to grow.
"LPS routinely always holds meetings to discuss the current condition of financial system stability in the country. In the meeting, we always coordinate to carry out the right policy mix in accordance with the duties and authorities of each institution," he explained.