TEMPO.CO, Jakarta- Financial Services Authority (OJK) said until recently banking general health condition is still good.
"Of 118 banks, most have a rating II or excellent and only about 10 percent is of rating III, or standard," said Deputy Commissioner of Banking Supervisors III Irwan Lubis in a press release on Friday, August 28.
The position in June, said Irwan, the banking industry is still growing, although not as fast as the first half of 2015, that has slowed due to current economic conditions. Loans grew 4.18 percent (ytd), and funds grow by around 4.5 percent.
While due to the depreciation of the rupiah, which is related to market risk through the balance sheet (liabilities and assets in foreign currency) and the type of bank. By regulation, currency "threshold" is at most 20 per cent of the capital. Currently, the industry’s net foreign exchange position (PDN) is still about five per cent.
Individually, PDN of 54 foreign exchange banks in far from the PDN threshold, at 2-10 percent. Of the 54 foreign banks, 51 is in “long” position, which means despite the weakening rupiah, the banks’ balance sheet gave positive effects on profit and loss.
While three banks are on ”short" position, or giving negative effects on the profit and loss account. However, their PDN position is still far below the threshold so it is not very influential.
In terms of CAR of 118 banks, according to their risk profile is on the 10-14 percent range. That is, all the banks meet their CAR risk profile. Individually, the lowest CAR is 11 percent, while the highest reached 35 percent. Industrial CAR average is 20.19 percent.
"So at the exchange rate at Rp14,000 and Rp15,000 to the US dollar for the time being there is no impact to the bank condition," said Irwan.
Regarding the results of the ”stress test" in March 2015, five banks are in the yellow light position, and is under OJK’s monitoring.
"We ask for more capital. Three banks added capital, two other banks is still within limit, so we asked them to improve their business strategies such as strengthening remedial unit with experienced credit problems or office and employee network efficiency," he said.
CAR of the five banks is already on the risk profile, at approximately 11 percent. Irwan said, that the stress tests are often carried out including its influence to the NPL. NPLs are now maintained at 2.55 per cent gross, and estimated in July it will only slightly increase between 2.56 or 2.58 percent.