Perbanas Supports OJK To Remove Core Capital Bank Group 1
JAKARTA - The National Bank Association (Perbanas) supports the Financial Services Authority (OJK)'s plan to consolidate the Core Capital Bank Group (KBMI) 1 to reduce the number of banks in Indonesia.
Chairman of Perbanas who is also the President Director of PT Bank Rakyat Indonesia Tbk (BBRI) Hery Gunardi said KBMI 1 currently amounts to 65 banks and is dominated by regional and private banks. In terms of capital, he considered KBMI 1 to be quite good with the Capital Adequacy Ratio (CAR) of 31.50 percent
"The capital of their CAR on average in terms of industry is still around 31.5 percent," said Hery in Jakarta, Monday, December 8.
However, in terms of returning assets or Return on Assets (ROA) KBMI 1 is still relatively low, which is 1.60 when compared to other large banks which are recorded at 3.38 percent.
Meanwhile, in terms of efficiency, Bank KBMI 1 has not been able to maintain operational costs for Operating Revenue (BOPO) as evidenced by the BOPO ratio of 83 percent, while KBMI 4 is only 64 percent.
"This is what we think that we need to address in the future the invitation submitted by the OJK to consolidate is easy to happen," explained Hery.
He also assessed that the OJK's move to propose consolidation was good enough to create a more efficient, productive and more competitive banking sector.
Furthermore, Hery also said that the size of a bank really affects future developments.
"Size does matters. This means that banks must have a certain economic scale," he said.
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Menurutnya, bank dengan modal inti di bawah Rp10 triliun sulit berkembang jika dibandingkan dengan bank dengan modal di atas Rp10 triliun.
Hal ini tercermin dari sulitnya mendapatkan margin juga dan investasi investasi.
"Kalah tuh sama yang bank KBMI 4 dari sisi jumlah cabang, ATM, mobile banking, karyawan dan sebagainya itu kalah bersaing. Jadi butuh skala yang besar," tandas Hery.
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According to him, banks with core capital below IDR 10 trillion are difficult to develop when compared to banks with capital above IDR 10 trillion.
This is reflected in the difficulty of getting a margin and investment.
"It's the same with the KBMI 4 bank, in terms of the number of branches, ATMs, mobile banking, employees and so on, it's less competitive. So it takes a large scale," said Hery.