OJK records banking credit growth of 10.85 percent in September 2024

Jakarta – The Financial Services Authority (OJK) noted that in September 2024 bank credit grew by 10.85 percent year on year (yoy) or to Rp. 7. 579 trillion.

“Credit growth is still continuing double digit growth of 10.85 percent yoy, which in August was recorded at 11.40 percent yoy,” said OJK Banking Supervisor Chief Executive Dian Ediana Rae at the RDK Press Conference, Friday, November 1, 2024.

In line with credit growth, Third Party Funds (DPK) also experienced positive growth. In September 2024, DPK was recorded to grow by 7.04 percent yoy to IDR 8,721 trillion.

“With current accounts being the biggest contributor to growth,” added Dian.

Meanwhile, the liquidity of the banking industry in September 2024 was also adequate with the Liquid Tools/Non-Core Deposit (AL/NCD) and Liquid Tools/Third Party Funds (AL/DPK) ratios of 112.66 and 25.40 percent, respectively.

“Still far above the threshold of 50 percent and 10 percent respectively,” he said.

Meanwhile, credit quality is maintained with a gross banking Non Performing Loan (NPL) ratio of 2.21 percent and a net NPL of 0.78 percent. Then, for loan at risk (LAR) showed a downward trend to 10.11 percent.

“The LAR ratio is also close to pre-pandemic levels, which amounted to 9.93 percent in December 2019,” he explained.

As for the performance of the Indonesian banking industry in September 2024, the level of bank profitability or ROA (return on assets) increased to 2.73 percent and high banking capital (CAR) of 26.85 percent. (*)