Revealed! Secrets Of The Jumbo Cuan Print Bank Even Though The Credit Is Stagnant

Illustration (Photo: Doc. Antara)

JAKARTA - An economic researcher from the Institute for Development of Economics and Finance (Indef) Abdul Manap Pulungan said that the collection of profits by banking institutions currently tends to increase even though the main business of credit is still relatively sloping.

According to him, banks are currently implementing a special strategy that is low risk but still profitable without optimizing the intermediation function.

Abdul noted that banks tend to choose to place their managed funds in securities, especially those issued by the government. This is reflected in the allocation of funds to securities which has increased from 12.83 percent to 18.14 percent at this time.

"That's why yesterday when we saw several banks accumulating very high profits because the allocation of funds in securities was also very high," he said to the media quoted on Thursday, May 12.

To note, the margin obtained by banks from securities is not fully used to pay interest to customers. Some of it is cultivated as profit because the yield on securities is higher than the interest on deposits in banks.

Furthermore, Abdul explained that this condition could not be separated from several things. First, the growth of third party funds (DPK) is still growing in double digits with 11.1 percent on an annual basis (year on year) in February 2022. This is in contrast to credit growth which is still single digit with 6.0 percent in the same period.

"Before the pandemic (February 2020) the allocation of banking funds to credit reached 66.6 percent and now it has decreased to 57.5 percent in February 2022," he said.