Banking industry liquidity in October 2022 was recorded at a maintained ratio. Based on a report from the Financial Services Authority (OJK), banking credit reached IDR 333.51 trillion or grew 11.95 percent on an annual basis (year-on-year/YoY) in October 2022.
The chief executive of OJK’s banking supervisor, Dian Ediana Rae, said that in a month, banking credit increased by IDR 58.61 trillion to IDR 6,333 trillion.
In the report distributed on the agenda for the monthly board of commissioners meeting (RDKB) which was held virtually on Tuesday (6/12/2022), banking industry liquidity in October 2022 was recorded at a maintained ratio.
“The ratio of liquid assets and non-core deposits AL/NCD was recorded at 130.17 percent. Meanwhile, in September 2022 it was still recorded at 121.62 percent,” concluded Dian.
Meanwhile, the ratio of liquid assets to third-party funds or AL/DPK, Dian continued, was 29.46 percent in October 2022 while in September it was recorded at 27.35 percent.
Thus, it can be concluded that the condition of banking liquidity is still at a safe level considering that the two ratios are still above the LA/NCD threshold of 50 percent and LA/DPK of 10 percent.
In addition, the capital adequacy ratio which serves to accommodate the risk of losses that may be faced by banks or the national banking capital adequacy ratio is reported to be far above the safe threshold.
“The net open position (NOP) in October 2022 was recorded at 2.01 percent or far below the 20 percent trace hold. Banking CAR was recorded to have increased to 25.13 percent from September’s position of 25.09 percent,” concluded Dian.
On the other hand, the Covid-19 restructuring credit again recorded a decrease of IDR 5.57 trillion to IDR 514.07 trillion.
OJK noted that the number of restructuring credit customers also decreased to 2.55 million customers from September 2022 of 2.63 million customers.