Abundant Banking Liquid at the End of 2017
By : Wiyanto And Aldo Bella Putra | Thursday, December 21 2017 - 22:00 IWST
INDUSTRY.co.id - Jakarta-Financial Services Authority noted that Indonesia's financial services sector until the end of 2017 continues to show a stable condition with intermediate performance at a positive level.
"Financial services sector stability during 2017 is supported by high capital and adequate liquidity to anticipate risks and support business expansion," said Chairman of OJK Commissioner Board Wimboh Santoso in a year-end press conference at OJK Office, Jakarta, Thursday (21/12/2017).
OJK data shows, until November CAR banking at 23.54% (minimum limit of 8%) with tier 1 Capital 21.74%. Risk based capital (RBC minimum 120%) of general insurance and life insurance are recorded at 310% and 492% respectively.
Market liquidity is also seen as adequate with the Excess reserve of banks as of December 13, 2017 amounting to Rp644.95 trillion, the ratio of liquid per non-core deposit and the ratio of liquid instruments per DPK of 101.75% and 21.44% respectively. While net inflow in domestic capital market for position s.d. December 19, 2017 amounting to Rp129, 3 trillion primarily derived from the SBN market.
The intermediary performance of the financial services sector also stood at a positive level, mainly supported by fund raising in the capital market, reaching Rp257.02 trillion, exceeding the 2017 target of Rp217.02 trillion.
Meanwhile, banking intermediation has started to grow indicated banking credit numbers s.d. the end of November 2017 has increased by Rp228 trillion, resulting in total banking credit reached Rp4.605 trillion or grew by 7.47% yoy.
"OJK estimates the growth of bank credit until the end of 2017 is in the range of 7-9%. The devaluation of bank credit growth compared to the target of Bank Business Plan 2017 of 11.86% yoy is due to consolidation by national banks in relation to credit risk including through the write off of non-performing loans primarily for commodity-based credit segments and their derivatives, "said Wimboh.
Meanwhile, the level of credit / non-performing financing in general is also maintained at a maintained level of 2.89% for banks and 3.08% for finance companies.
While the interest rates of banks, both interest rates on deposits and interest rates on loans showed a downward trend. Data up to November 2017 show the fact that the 1-month deposit rate averaged 5.72%, down 64 bps from last year and the average lending rate of 11.45%, down 72 bps from last year