OJK Records Banking Credit Grows 10.85 Percent In September 2024

JAKARTA - The Financial Services Authority (OJK) reported that in September 2024, credit growth continued to double-digit growth by 10.85 percent yoy to Rp7,579.25 trillion.

Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae explained, based on the type of use, Investment Credit grew the highest at 12.26 percent.

"Followed by Credit Consumption 10.88 percent, while Working Capital Loans 10.01 percent," he said in an online press conference, Friday, November 1.

Judging from bank ownership, continued Dian, state-owned banks are the main driver of credit growth, which is 12.80 percent yoy.

Based on the debtor category, credit corporation grew by 15.43 percent, while MSME loans also continued to grow by 5.04 percent.

On the other hand, banking Third Party Funds (DPK) grew by 7.04 percent yoy to Rp8,720.78 trillion, with demand deposits, savings, and deposits each growing by 9.38 percent, 7.30 percent, and 4.95 percent yoy.

The liquidity of the banking industry in September 2024 remained adequate, with the Liquid Equipment/Non-Core Deposit (AL/NCD) ratio and Third Party Liquid/Department (AL/DPK) ratios of 112.66 percent and 25.40 percent respectively and still above the threshold of 50 percent and 10 percent, respectively.

The Liquidity Coverage Ratio (LCR) is at the level of 222.64 percent and the Net Stable Funding Ratio (NSFR) at the level of 129.50 percent, indicating short-term liquidity resistance and solid future banking industry funding.

Meanwhile, credit quality is maintained with a gross NPL ratio of 2.21 percent (August 2024: 2.26 percent) and net NPL of 0.78 percent (August 2024: 0.78 percent).

"Loan at Risk (LaR) also shows a downward trend to 10.11 percent," he added.

The LaR ratio is also close to the pre-pandemic level of 9.93 percent in December 2019.

"In general, the level of bank profitability (ROA) increased to 2.73 percent, showing the performance of the banking industry remains resilient and stable," said Dian.