Credit Grows Slower to 8.08%, Here’s OJK’s Said

Jakarta – Credit in April 2023 grew 8.08% yoy, slowing down compared to March 2023 which amounted to 9.93% or to Rp6,464 trillion. Growth was supported by working capital loans which moderated to 6.55%.

“On a mtm basis, working capital and consumption loans grew by 0.55% and 0.32% respectively, with investment loans contracting by -0.16%,” said OJK’s Chief Executive of Banking Supervision, Dian Ediana Rae in a press conference, Tuesday, June 6, 2023.

Meanwhile, the growth of Third Party Funds (DPK) in April 2023 was recorded to decline to 6.82% yoy, compared to March 2023 of 7% to Rp7,996 trillion, mainly driven by a decrease in savings.

Liquidity of the banking industry in April 2023 was at an adequate level with maintained liquidity ratios. The Liquid Tools/Non-Core Deposit (AL/NCD) and Liquid Tools/DPK (AL/DPK) ratios amounted to 118.25% respectively, down from 128.87% in March 2023 and 26.58% compared to 28.91% in March 2023.

“Although the decline is far above the regulatory thresholds of 50% and 10% respectively,” he explained.

Credit risk continued to decline with the banking net NPL ratio of 0.78%, an increase compared to March 2023 of 0.72% and gross NPL of 2.53%, an increase in March 2023 of 2.49%.

On the other hand, Covid-19 restructured loans again recorded a decline of Rp19.42 trillion to Rp386.03 trillion, compared to March 2023 of Rp405.42 trillion, with the number of customers also decreasing to 1.74 million customers.

“Market risk has also decreased in terms of the Net Open Position (NOP) recorded at 1.60% compared to March 2023 of 1.44%, far below the 20% threshold,” he concluded.

Meanwhile, banking capital is still at a solid level with the Capital Adequacy Ratio (CAR) of the Banking industry at 24.57%, compared to March 2023 of 24.69%.

“OJK will continue to support banks through the necessary policy steps so that banks continue to grow sustainably but remain prudent in their risk management aspects,” he said. (*)

Editor: Rezkiana Nisaputra