OJK Opens New Funding Sources For Banks, What Is It?

Money illustration (Photo: VOI)

JAKARTA - It is said that the Financial Services Authority (OJK) is currently reviewing options for new sources of funding for banks so they are not stuck by the current conventional system.

Chairman of the OJK Board of Commissioners Wimboh Santoso said, in simple terms, the scheme to be worked on is to synchronize the banking system with other financial services industries such as insurance which has long-term fund characteristics.

"So far, we know that our banking is a commercial bank. Meanwhile, many of our insurance companies have long-term funds, so we have to create an ecosystem or a long-term investment mechanism as well as a long-term source of funds, "he said Tuesday, January 26.

According to Wimboh, adjustments to bank funding schemes are a necessity that must occur in banking institutions in order to keep up with current market needs.

"If changes are not made immediately it will endanger the bank in terms of liquidity in the future," he said. The OJK boss explained that currently the main focus of banks in raising funds is from the side of third party funds (DPK), especially deposits.

“Current sources of funds are short-term, such as deposits. Even the average deposits that we recorded were less than six months, ”he explained

This, of course, will be burdensome for the bank's performance if it enters the sector of lending and financing with a long term, such as infrastructure.

"If it is not fixed, our banks will miss and match the needs of the industry at any time," he said.

As a real effort, Wimboh admitted that he is currently working on formulating regulations governing long-term bank funding sources.

"We will facilitate it with complete legal or statutory instruments," he said.

For information, until December 2020, third party bank funds consisting of savings, current accounts, and deposits totaled Rp.6,665 trillion. This figure is down slightly from the position in November 2020 which amounted to 6,635 trillion.

Meanwhile, credit in the last month of last year amounted to Rp. 5,481 trillion, down slightly from the distribution of credit in November 2020 which amounted to Rp. 5,448 trillion.