OJK Values Improved Himbara Bank Liquidity, LDR Drops After Injecting Government Funds

OJK Chairman Mahendra Siregar (Photo: dock. VOI)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar emphasized that the injection of funds of Rp200 trillion directly strengthened the liquidity position of state-owned bank sets (Himbara).

He said that before the additional funds entered, the ratio of liquid assets to third party funds (DPK) in a number of banks was still below 20 percent. But after that, the ratio increased and managed to exceed the 20 percent threshold.

"The DPK previously was several under 20 percent with the input of Rp200 trillion, now it is above 20 percent all and indeed 20 percent is a good threshold to measure the liquidity of a bank in the Navy, the DPK," he explained at the DGT Headquarters, Tuesday, September 16.

Second, in terms of the bank's ability to channel financing or credit, Mahendra said that there had been significant improvements, where previously, a number of Himbara banks recorded loans to deposit ratios (LDR) above 90 percent, which indicated limited space for credit expansion.

According to him, this decline opens up greater space for banks to channel more credit.

Mahendra also emphasized that the direction of lending will continue to refer to priority sectors set by the government and banks are still required to carry out prudential principles in analyzing credit risk.

"If that's the case, of course each bank has the ability to analyze its risks and of course all its implementation remains within the prevailing prudential rules. I don't think anything is excluded or sacrificed there," he said.

He also ensured that there was no intervention in the risk analysis process and credit approval by the bank and the OJK would continue to supervise the implementation of this policy.

Mahendra said that routine evaluations will be carried out to ensure that the banking intermediation function runs optimally according to the expected goals.

"As for the area, I certainly listen to the government regarding priority sectors. But in the distribution, I don't think there will be anything that will be given exceptions in such matters. Because the authority lies in the condition of each bank taking the risk of analysis or also doing the stages of the implementation process," he said.