OJK Records Banking Credit Grows 10.79 Percent In November 2024

OJK (photo: dock. Antara)

JAKARTA - The Financial Services Authority (OJK) noted that in November 2024 bank credit grew by 10.79 percent year on year (yoy) or to Rp7,717 trillion.

"Credit growth is still continuing double digits growth by 10.79 percent year on year to Rp7,717 trillion," said OJK Banking Supervision Chief Executive Dian Ediana Rae at the RDK Press Conference, Tuesday, January 7.

On the other hand, banking Third Party Funds (DPK) also recorded a growth of 7.54 percent (yoy) to Rp8,835.9 trillion.

"With giro, it is the largest growth contributor," he said.

Meanwhile, banking industry liquidity in November 2024 is also adequate with a Liquid/Non-Core Deposit (AL/NCD) ratio and Third Party Liquid/Department (AL/DPK) ratio of 112.94 and 25.57 percent, respectively.

"It's still far above the threshold of 50 percent and 10 percent, respectively," he said.

Meanwhile, credit quality is also maintained with a gross banking NPL ratio of 2.19 percent and a net NPL of 0.75 percent. Then, loan at risk (LAR) showed a downward trend to 9.82 percent.

"The LAR ratio is already lower than the level before the pandemic, which was 9.93 percent in December 2019," he said.

Dian conveyed that in general, the performance of the Indonesian banking industry in November 2024, the level of profitability of banks or ROA (return on assets) to 2.69 percent and high banking capital (CAR) by 26.92 percent was the cushion for strong risk mitigation in the midst of global uncertainty conditions.