The banking sector
responded positively to macro-prudential policy adopted by BI. As told, BI
relaxed macro prudential policy by way of stepping up Loan-to-Value ratio (LTV)
or Financing to Value (FTV) for credit property and automotive. The policy was
intended to keep the economic growth momentum.
The essential changes of LTV/FTV and
down payment included some aspects among others change on the size of LTV ratio
for credit property (KP) and FTV ratio for Syariah Property Credit.
Increased size of LTV/FTV ratio came
to 10% and was applicable for ground houses, vertical homes and shop-houses,
office houses starting form type 21 down and type 70 up. Meanwhile changes on
rules for down payment for credit or motor vehicles Financing (Syariah) was
applicable for 2- wheel or 3-wheel vehicles.
The downpayment was reduced to 5%;
BI also regulated the procedures and conditioning for banks if they wished to
apply LTV/FTV and amount of Down Payment in accordance with the new regulation.
Beside LTV and FTV ratio and down
payment, relaxation was also applied on guarantee given by developers to banks
in extending credit and financing and/or fund deposited and/or kept in escrow
account an the creditor/financer bank.
The value of guarantee was at least
the difference between the commitment of credit/financing with credit/financing
exercised by banks. Meanwhile he guarantee given by other parties could be in
the form of corporate guarantee, stand by letter of credit or bank guarantee.
Broadly speaking, relaxation of this
regulation was based on the consideration that property and automotive credit
had also connectivity with other economic sectors. In the end, the after effect
of credit relaxation might boost economic growth.
Besides, this new policy was
expected to stimulate the intermediary role of banks in credit financing to the
public. They policy was written in PBI No.17/PBI/2015 on Loan to Value Ratio or
Ratio financing to Value for Credit or Financing Property and Down Payment for
Credit or Automotive Financing effective as per June 18, 2015.
On the other hand, BI had stipulated
that the new LTV/FTV rules and the new Down Payment would be connected with
bank performance in managing Non Performing Loans Which was an effort to
mitigate risk to the relaxation given would not increase risk potentials.
Thereby it was expected that credit
pipelining to the people would be enhanced but still observing the principle of
prudence for the public or the bank. Now the expectant public could expect that
the relaxation policy would open access to KPR and KKB.
Automotive producers were definitely
the advantaged party by this macro prudential policy. Pressures on sales of 4
wheel and 2 wheel vehicles in the first 5 months was expected to be compensated
by sales increase after BI’s relaxation policy.
Date of the 1.2 million units of car
sales which was corrected to 1.1 million units this year was probably
attainable. Developers would certainly respond positively to the relaxation of
KPR policy which required LTV ratio. With increased LTV limit, people would have
better chance to access KPR.
Increased KPR and KKP mortgage means
greater opportunity for the economic sectors related to the two credit types.
Job opportunities were wide open in line with growing demand for KPR and KKB
mortgage. The ghost of works mass dismissal would soon diminish with bright
prospect of the two sectors.
Growing demand in property and automotive signaled that the economic prospect of a country was expanding so
it should discard the perception that Indonesia was falling into economic
recession. The economic activities propelled by the property and automotive
sectors which was capital intensive and labor intensive.
The only thing was that although
this macro prudential policy opened broader room for banks be expensive in credit
pipe lining to the property an automotive sectors, the prudential policy opened
broader room for banks be expansive in credit pipe lining to the property an
automotive sectors, the prudential policy must still be the main reference.
Noteworthy was the fact that the
condition of economy was on the downturn, so if banks jacked up KPR and KKB, it
was feared to increase NPL. The euphoria among the banking sector must not be
out of control. (SS)
Business News - July 1, 2015
No comments:
Post a Comment