OJK Pede Perbankan Performance Improves At The End Of 2024

Rupiah and US Dollar (Intermediate photo)

JAKARTA - Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae said that the OJK continues to monitor and supervise bank performance in the hope that banks can achieve performance growth as set out in the Bank's Business Plan.

Meanwhile, one of the monitoring tools carried out is through the OJK Banking Business Orientation Survey (SBPO). In the implementation of the fourth quarter-2024 SBPO involving 93 respondents' banks, respondents showed optimism that the banking performance would be better in the fourth quarter of 2024.

Dian conveyed that banking optimism was reflected in the Banking Business Orientation Index (IBP) which was recorded at 66 (optimal zones), driven by expectations of improving domestic macroeconomic conditions, increasing banking intermediation functions and implementing prudent risk management amid relatively less conducive global macroeconomic conditions.

"The belief in improving domestic macroeconomic conditions is mainly due to estimates of improving the domestic economy (GDP) and BI-Rate estimates that tend to decline," he said in his statement, Monday, November 25.

Dian estimates that GDP will be quite good driven by public consumption which is expected to increase during the Naru holiday period (natal and New Year).

In addition, according to Dian, the factor for increasing government spending with the implementation of simultaneous PILKADA (Regional Head Election) in November 2024 will also be a positive factor.

Meanwhile, from the banking side, Dian said that the majority of respondents believed that the risk of banking in the fourth quarter of 2024 was still maintained and under control, as seen from the Risk Perception Index (IPR) of 55 or classified as a fairly manageable risk, especially with the belief that credit risk and market risk were maintained.

According to Dian, credit quality is believed to be well maintained and PDN is at a low level and a long position, while retability is expected to increase in line with the gradual increase in lending and cost of funds.

"In that case, the risk of liquidity is also estimated to be stable compared to the previous quarter," he explained.

In line with this, Dian conveyed that the expectations of banking performance in the fourth quarter of 2024 also remained optimistic with an IEK of 81, driven by expectations of economic growth which was still quite optimistic so that it could encourage demand for credit and community business activities.

As for the fundraising side, respondents estimate that Third Party Funds (DPK) will also grow in line with improving economic activities and the incessant business of banks to obtain sources of funds to support credit growth.

In addition, Dian conveyed that his party also collected information related to the projection of achieving credit and DPK targets according to the 2024 Bank Business Plan (RBB) in this SBPO. Based on the results of SBPO, the majority of respondents' banks are optimistic that the target for lending and bank DPK can be achieved in accordance with the 2024 RBB.

Furthermore, Dian conveyed that the simultaneous PILKADA implementation in November 2024 is believed to have a positive impact on the local economy, especially through increasing consumption and its main activities through MSMEs in sectors such as transportation, printing, accommodation, food and entertainment.

"The regional head candidate campaign created additional demand that drives the local economy, increases the circulation of money, and opens temporary employment opportunities," he said.