Banking Performance On Wind! Planting Credit Distribution 10.62 Percent As Of August 2022, NPL And Capital Ratios Are Still Maintained

Chief Executive of OJK Banking Supervision Dian Ediana Rae. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) noted that banks had disbursed loans of Rp6,179.5 trillion from January to August 2022. This record grew 10.62 percent compared to the same period the previous year (year-on-year/yoy).

"Bank credit in August 2022 grew relatively stable mainly supported by working capital loans which grew by 12.19 percent (yoy)," said OJK Banking Supervisory Chief Executive Dian Ediana Rae at the OJK Board of Commissioners Press Conference quoted by Antara, Monday 4 October.

Meanwhile, when compared to July 2022, the nominal bank credit was recorded to have increased by 0.33 percent or Rp20.13 trillion from Rp6,159.3 trillion.

Meanwhile, he revealed that the growth rate of Third Party Funds (DPK) in August 2022 was recorded at 7.77 percent (yoy) to Rp7,608 trillion or to slow down compared to the previous month of 8.59 percent (yoy), which was mainly driven by the slowdown in the game.

In the midst of the downward trend in liquidity as a result of tightening monetary policy, both through the increase in the Giro Mandatory Minimum (GWM) and rising interest rates, the liquidity of the banking industry last month was observed to be still at an adequate level with maintained liquidity ratios.

Liquid Equipment Ratio/Non-Core Deposit (AL/NCD) and Liquid Equipment (DPK) respectively by 118.01 percent or decreased from July 2022 which was 124.4 percent and 26.52 percent or decreased from July 2022 by 27.92 percent. This figure is far above the minimum threshold of 50 percent and 10 percent, respectively.

In addition, Dian said that banking risk profiles in August 2022 were still maintained with a bad credit ratio (Non Performing Loan/NPL) of 0.79 percent, while the gross NPL was at the level of 2.88 percent.

"The position of the Neto Foreign Exchange (PDN) in August 2022 is recorded at 1.6 percent or below the 20 percent threshold," he said.

With this condition, banking capital is still maintained, he said, so that it is reflected in the banking industry's Ratio of Adequacy Ratio (CAR) in August 2022 which increased to 25.21 percent.