Bank Indonesia: Current Situation Better Than 1998, 2008 Crises
Translator
Ricky Mohammad Nugraha
Editor
Markus Wisnu Murti
Jumat, 17 Juli 2020 18:41 WIB
Bank Indonesia (BI) senior deputy governor Destry Damayanti. TEMPO/Hendartyo Hanggi
TEMPO.CO, Jakarta - Bank Indonesia (BI) senior deputy governor Destry Damayanti on Friday clarified the fears of many regarding the domestic financial climate. She assured in today’s virtual discussion that the current condition was far better than the 1998 and 2008 financial crises.
“We can also see that the bank liquidity tools continued to improve,” said Destry on July 17.
She said this was evident when the capital adequacy ratio (CAR) was divided with the third-party funds, which resulted in a ratio that was far above the minimum level.
The May 2020 capital adequacy ratio was recorded at 22.14 percent with non-performing loans or NPL at 3.00 percent (gross) and 1.17 percent (net). The third-party funds raising was also recorded to be higher than the credit growth of 8.89 percent (yoy).
Bank Indonesia has also dropped its 7-day reverse repo rate by 175 base points. She said interest rates had only lowered by 74 points despite the drop. She believed that banks were still being cautious before offering loans due to the risks.
