Relieve! BI Stress Test Simpulses Strong National Banking Against The Close Of Three Large US Banks

Photo: Ciputra Mall Semarang

JAKARTA Bank Indonesia (BI) firmly stated that the condition of national banking is in good readiness following the closure of the Silicon Valley financial services institution in the United States (US). This was conveyed directly by the Governor of BI to the media crew this week.

"These various conditions support the resilience of Indonesian banking so that it is estimated that its performance will not be directly affected by the dynamics of closing three banks in the US," he said while giving information to media crews in Jakarta, quoted Friday, March 17.

According to Perry, this assumption was obtained based on simulations that have been carried out by the central bank in recent times.

"The results of the Bank Indonesia stress test also show strong national banking resilience," he said.

Perry added that another thing that became BI's reference was the fundamental condition of Indonesia's banking which was in prime condition. This indication is reflected in strong capital with an Adequacy Ratio (CAR) capital adequacy ratio of 25.88 percent in January 2023.

"Financial system resilience, especially banking, is maintained, both in terms of capital, credit and liquidity risks," he said.

Furthermore, credit risk is also under control, as reflected in the low non-performing loan (NPL) ratio of 2.59 percent grossly and 0.76 percent net in January 2023.

Meanwhile, banking liquidity in February 2023 was maintained to be supported by growth in Third Party Funds (DPK) by 8.18 percent year on year (yoy).

"In the future, Bank Indonesia will continue to strengthen synergies with the Financial System Stability Committee (KSSK) in mitigating various domestic and global macroeconomic risks that can disrupt financial system resilience," concluded Perry.

As is known, the three banks that have been known as strong supporters of the digital money industry and the main lenders of startup companies were closed or taken over by the US government following the worsening balance sheet and were unable to meet the massive withdrawals from the depositors. The banks are Silion Valley Bank, Silvergate Bank, and Signature Bank.