28/10/2023. Indonesian banks are believed to be in a fairly resilient condition amid the challenges of unstable global economic conditions.
This may be observed in the history of Indonesian banking, which has managed to weather numerous economic crises year after year.
President Director of PT Bank Negara Indonesia (Persero) Tbk Royke Tumilaar revealed that strong capital and good risk management are the main assets of Indonesian banks to anticipate various risks of global economic uncertainty.
“The Indonesian banking sector is quite resilient because it has gone through many crises so we have learned a lot and are very ready to face the current global economic situation,” he said at the BNI Investor Daily Summit 2023, Jakarta, Wednesday (25/10/2023).
Royke said that Bank Indonesia (BI) had raised the benchmark interest rate to 6%, and banks did not necessarily raise lending rates.
This is due to banks' capacity to forecast future interest rate fluctuations.
Banks are also able to maintain a stable credit quality.
"I believe that this high interest rate is not new; the public has been aware of it since the crisis began last year. BI has held back long enough to avoid raising it. The rising trend in interest rates is not an issue because it was anticipated,” said Royke