OJK Reveals Banking Credit Reaches IDR 7,656.9 Trillion

Banking credit (Photo: Antara)

JAKARTA - The Financial Services Authority (OJK) revealed that in October 2024 the performance of Indonesian banking grew positively.

OJK Banking Supervision Chief Executive Dian Ediana Rae said that in October 2024, credit growth continued to double-digit growth by 10.92 percent on an annual basis or year on year (yoy) to Rp7,656.90 trillion.

Dian conveyed that based on the type of use, Investment Credit grew the highest at 13.63 percent, followed by Credit Consumption 11.01 percent, while Working Capital Loans 9.25 percent.

While reviewed from bank ownership, Dian said that state-owned banks are the main driver of credit growth, which is 12.64 percent yoy.

"Based on the debtor category, corporate credit grew by 16.08 percent, while MSME loans also continued to grow by 4.76 percent," he said at the RDK Press Conference, Friday, December 13.

On the other hand, banking Third Party Funds (DPK) grew by 6.74 percent yoy to Rp8,751.16 trillion, with demand deposits, savings, and deposits each growing by 6.72 percent, 7.43 percent, and 6.18 percent yoy.

Meanwhile, Dian conveyed that the liquidity of the banking industry in October 2024 remained adequate, with the ratio of Liquid/Non-Core Deposit (AL/NCD) and Third Party Liquid/Department (AL/DPK) ratios of 113.64 percent and 25.58 percent respectively and still above the threshold of 50 percent and 10 percent, respectively.

Meanwhile, the Liquidity Coverage Ratio (LCR) is at the level of 222.70 percent and the Net Stable Funding Ratio (NSFR) at the level of 129.50 percent, indicating a solid short-term liquidity and long-term funding of the banking industry in the future.

Meanwhile, credit quality is maintained with a gross NPL ratio of 2.20 percent and net NPL of 0.77 percent.

Loan at Risk (LaR) also showed a downward trend to 9.94 percent. The LaR ratio also approached the pre-pandemic level of 9.93 percent in December 2019.

In general, the level of bank profitability (ROA) of 2.73 percent shows that the performance of the banking industry remains resilient and stable.

Banking resilience also remains strong as reflected in capital (CAR) which is at a high level and increases by 27.07 percent and becomes a strong risk mitigation cushion amidst global uncertainty conditions.