Banking Credit Grows 12.40 Percent, This Is The Motivater Sector

Rupiah (Photo: Antara)

JAKARTA - The Financial Services Authority (OJK) noted that in March 2024 bank credit grew double digits, which was 12.40 percent year on year (yoy) to Rp7,245 trillion.

"In terms of intermediation performance, in March 2024, mtm credit increased by Rp150 trillion, or grew by 2.12 percent mtm. Meanwhile, on an annual basis, credit continued its double-digit growth record of 12.40 percent (yoy) to Rp7,245 trillion," explained OJK Banking Supervision Chief Executive Dian Ediana Rae in a RDK press conference, Monday, May 13.

Dian said, based on the type of use of bank credit growth, the investment sector was 14.83 percent yoy. Meanwhile, working capital and consumption loans grew 12.30 percent and 10.22 percent, respectively.

Meanwhile, the largest nominal amount is Working Capital Loans which reached IDR 3,273.27 trillion. On the other hand, reviewed from bank ownership, BUMN Bank is the main driver of credit growth, which is growing by 13.72 percent yoy.

In line with bank credit growth, Third Party Funds (DPK) also experienced positive growth, both monthly and annually. In March 2024, DPK recorded a growth of 1.90 percent (mtm) or an increase of 7.44 percent (yoy), compared to February 2024 of 5.66 percent (yoy) or to Rp8,601 trillion, with the demand being the largest growth contributor, namely 9.37 percent yoy.

"The liquidity of the banking industry in March 2024 is also adequate with the ratio of Liquid Equipment/Non-Core Deposit (AL/NCD) and Third Party Liquid/Department Equipment (AL/DPK) ratios of 121.5 and 27.18 percent, respectively, above the threshold of 50 percent and 10 percent," he said.

Meanwhile, credit quality is maintained with a net banking NPL ratio of 0.77 percent compared to February 2024 of 0.82 percent and gross NPL of 2.25 percent compared to February 2024 of 2.35 percent.

Based on the results of the stress test conducted by the OJK, the current condition of the volatility of the rupiah exchange rate has relatively little direct effect on bank capital, considering the position of Indonesia's banking neto foreign exchange (PDN) which is still far below the threshold and in general, PDN's position is recorded long.

In the midst of global financial market volatility, the performance of the Indonesian banking industry as of March 2024 remains resilient and stable, supported by a profitability rate of 2.62 percent and a net interest margin (NIM) of 4.59 percent.

Furthermore, banking capital adequacy ratio (CAR) is still at a relatively high level of 26.00 percent. This is a solid risk mitigation cushion in the midst of global uncertainty conditions.