Banking Business Prospects After Revocation Of PPKM: Will Be Expansive, But Keep Alert On Global Receivable Threats

Banking observer Paul Sutaryono assesses the lifting of the Implementation of Community Activity Restrictions (PPKM) as a bonus for business people, including the banking industry in facing a potential global recession in 2023.

As is known, the government has officially revoked PPKM at the end of 2022. "The revocation of PPKM has made the banking industry more courageous in running a business," Paul said as reported by Antara, Monday, January 9.

With the revocation of PPKM, banking business operations can be carried out more freely because there are no restrictions.

Even so, he reminded banks to remain vigilant in facing 2023 which is predicted to be full of uncertainty and the threat of a global recession.

Therefore, banks are expected to remain obliged to increase vigilance by being careful in channeling credit or being more selective, even though there is optimism about credit growth this year.

"The distribution of bank credit is expected to still grow to double digits in 2023, where as of November 2022 it is able to grow 11.16 percent compared to the same period last year (year on year/yoy)," he said.

In addition, Paul said, banks are also required to boost credit to sectors that are able to absorb a lot of labor, such as the manufacturing sector, agriculture, fishery, mining, electricity, transportation, construction, accommodation supply, and the provision of food and drink.

With lending to the sectors in question, banks can assist the government in suppressing the open unemployment rate.

On the other hand, banks are also required to increase the level of efficiency. This is one of the moves in winning the increasingly fierce banking competition lately.