OJK: Banking Stability 2022 Supported By Credit Restructuring Policy

JAKARTA - The Financial Services Authority (OJK) stated that the performance of the banking industry during 2022 is well maintained and grows positively and is able to withstand the pressures of the global economy.

OJK Banking Supervision Chief Executive Dian Ediana Rae said this achievement could not be separated from the authority's policy to the banking industry and business actors, including the extension of credit restructuring and several other strategic policies.

"It is better if the banking performance is inseparable from the supervision and arrangements made by the OJK and also support for fiscal and monetary policies in maintaining financial system stability," he said in a press statement quoted Wednesday, January 11.

According to Dian, his party is optimistic that banking conditions will be maintained and support national economic growth, although risks need to be watched out for amid global uncertainty that could lead to a slowdown in economic growth.

"We will continue policies regarding banking consolidation, strengthening supervision, integrity of the banking industry, to accelerating Islamic banking," he said.

For information, OJK data states that in November 2022 bank credit grew 11.16 percent year on year (yoy) with third party funds (DPK) increasing by 8.78 percent (yoy).

Positive indicators are also reflected in the complex liquidity conditions as reflected in the AL/NCD and AL/DPK ratios of 134.97 percent and 30.42 percent, respectively. The liquidity ratio is still far above the threshold, although it is lower than last year's period due to the acceleration of lending and the policy of increasing the GWM ratio.

On the capital side, it is maintained with CAR at 25.49 percent. The risk of credit tends to decrease, as reflected in the ratio of both gross and netts of 2.65 percent and 0.75 percent, respectively. Meanwhile, Loan at Risk was 15.12 percent.

Dian said that the decrease in credit risk was partly due to improving credit quality which was restructured due to COVID-19.

"OJK will continue to monitor developments in the global and domestic economic conditions to ensure that the policies implemented will remain effective in encouraging sustainable economic growth," he concluded.