Tuesday, 10 June 2014

BANK’S LIQUIDITY IN FAVORABLE CONDITION TODAY



In the third week of May 2014 liquidity condition of banking industry or banks as individual was in'-normal condition, when every Bank was able to fufill all obligations which were urgent or short term within a period of some months ahead.

Deputy Commissioner of OJK Strategic Management I B, Lucky Fathul AH in his press conference in Jakarta on Friday [24/5] on Friday [24/5] stated that in this case he had made inspection through continual monitoring over the quality and liquidity condition of banks to make sure that banks and the banking industry was in favorable condition and was able to operate healthily and competitively.

OJK's appraisal over capitalizing quality of the banking industry by end of Q-1 2014 sower CAR of 19.77% which was way above regulatory treshhold of 8% or based on risk profile of banks. Evaluation of four bank category was as follows: Business Activities General Banks [BUKU] 1 19.65%, BUKU 2 18.44%, BUKU 3 17.75% and BUKU 4 17,96%.

The adequate banking capitalizing was among others indicated by low NPL ratio, i.e. 1.01% - mean­while by end of Q-1 2014 OJK had been monitoring realization of Bank Business Plan [RBB] 2014 which sig­naled credit growth of 0.37% and growth of Third Party Fund [DPK] 1.25% year to date.

Bank's Intermediary Activities was measured by Loan to Deposit Ratio [LDR] of 91.17%. Credit growth and DPK through Q-1 of 2014 was rated as still being on-track with RBB as a whole. OJK would monitor con­tinually realization by each bank considering that 2014 was election year and preparation for Asia Economic Community 2015.

OJK had urged all executives at the management helm to step up quality of Risk Management and Good Corporate Governance [GCG]; always to observe prudential principle and prioritize on customers' interest. (SS)


Business New - May 28, 2014

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