JAKARTA - Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadive said national banks need to diversify financial instruments to maintain sources of fund availability amid uncertainty in the global financial market.
"Diversification of financial instruments must still be carried out so that the availability of funds is always sufficient," said Purbaya in Jakarta, quoted from Antara, Friday, March 31.
Until now, according to Purbaya, national banking liquidity is still simple or adequate.
He appealed to the national banking industry to increase health indicators such as capital ratios and fulfillment of liquid equipment to anticipate economic uncertainty in the world after the banking crisis in the United States and Europe.
According to Purbaya, banking liquidity indicators in Indonesia reach 2.5 cal from the threshold or threshold of bank health provisions.
He explained that the banking liquid/non-core deposit (AL/NCD) indicator as of January 2023 reached 129.64 percent, while the third party liquid/fund (AL/DPK) as of January 2023 was 29.13 percent.
In addition, Indonesia's banking capital adequacy ratio (CAR) as of January 2023 reached 25.93 percent and around 85 percent of the capital component was included in the core capital classification (Tier 1 capital, CET 1). In comparison, the core capital ratio of American banking is 13.52 percent and Europe is 16.13 percent.
Liquidity indicators from Liquidity Coverage Ratio (LCR) and Net-Stable Funding Ratio (NSFR) of Indonesian banking were also recorded at 232.22 percent and 134.58 percent, respectively, based on data from the Financial Services Authority (OJK) as of January 2023.
Furthermore, Purbaya appealed to the public to continue to believe in national banking and not be afraid to start investing even though there is potential recession in several major countries.
"People must also remain calm regarding their savings because the current LPS assets are more than Rp. 196 trillion. So don't be afraid to save, because LPS funds are sufficient to guarantee public savings," said Purbaya.
The shock of banking in the US emerged after the bankruptcy of Silicon Valley Bank (SVB) which centralized the financing portfolio for startups and venture capital companies. Prior to SVB, bank failures also hit Silvergate Bank and Signature Bank.
After the banking crisis in the US, it was revealed that a number of banks in Europe also had financial health problems. Banking giant Credit Suisse has finally had to be acquired by UBS. Recently, Deutsche Bank's shares also plummeted after the risk of default increased.
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