Continuing Uncertainty, OJK Wanti-want The Impact To The Banking Sector

Illustration (Photo: Doc. Antara)

JAKARTA - Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae said, although the current financial system stability is well maintained, it is necessary to pay close attention to risks amidst global uncertainty that could lead to a slowdown in economic growth.

According to him, this situation is very likely to have an impact on the national financial industry, including banks. Even so, he asked business actors to remain optimistic but vigilant.

"Some of the risks that banks need to watch out for include the scarring effect of the COVID-19 pandemic, the increase in yields of securities, the potential for rupiah depreciation and decreased liquidity," he said in a written statement on Tuesday, January 10.

Dian explained, in order to maintain financial system stability and sustainable economic growth, future banking policies are aimed at strengthening regulation and supervision.

"OJK wants to develop a healthy, efficient and integrity banking industry. Therefore, we continue to strengthen the early warning system so that we can detect financial problems early and other aspects before protracted and becoming big," he said.

Dian added that the authority will also continue to consolidate banks, especially against Islamic banking, regional development banks (BPD) and BPR/BPRRS.

BPD consolidation is carried out through the establishment of an Integrated Bank Business Group (KUB). This is important, because large-scale banks can meet liquidity and capital needs and create synergies in the expansion of banking products and services, strengthening governance and infrastructure (technology and human resources), increasing customer bases," he explained.

Through these various mixes of surveillance and policy strategies, OJK is optimistic that in the future banks will be more resilient in the face of the high uncertainty of the global economy.

"OJK will continue to monitor developments in the global and domestic economic conditions to ensure that the policies implemented will remain effective in encouraging sustainable economic growth," he said.

"In addition, OJK will always be proactive and strengthen collaboration with stakeholders in maintaining healthy banking conditions and performance," concluded Dian.