Towards The End of The Year, OJK Continues to Maintain Financial Services Sector Stability

KNews.id- The Financial Services Authority continues to improve supervision and implementation of policies that have been issued to maintain the stability of the financial services sector amid the economic slowdown due to the impact of the Covid-19 pandemic. Based on data from November 2020, it is recorded that financial system stability is still maintained amidst the efforts of the OJK to support the national economic recovery policy that the Government continues.

“Various policies and monitoring instruments have been issued to prevent the wider impact of the Covid-19 pandemic on the economy and the financial sector, especially to help the community, the informal sector, MSMEs and business actors, including with a credit restructuring and financing (leasing) policy which is extended to March 2022, ”wrote OJK Deputy Commissioner for Public Relations and Logistics, Anto Prabowo, Monday (28/12).

Furthermore, until November 30, the total Covid-19 restructuring credit reached IDR 951.2 trillion from around 7.53 million bank debtors consisting of 5.80 million SME debtors with a value of IDR 382 trillion and 1.73 million non-SME debtors with a value of IDR569. 2 trillion.

Meanwhile, the total restructuring for finance companies as of December 15 reached IDR188.3 trillion from 4.94 million contracts. Meanwhile, the restructuring value in MFI reached Rp. 26.4 billion, including Rp. 4.5 billion in BWM.

“Since the beginning of the impact of this pandemic affecting the Indonesian economy, the OJK immediately took various policies, namely temporarily prohibiting short selling, implementing asimetric auto rejection and trading halt 30 minutes to reduce five percent of trade, eliminating trading in the pre-opening session, and enforcing buy. back shares without going through the GMS, “written in the official statement of the OJK.

In addition, the OJK has also issued various other policies, particularly in the stock market, such as relaxing the deadline for submitting financial reports, shortening trading hours on the stock exchange and implementing virtual fit and proper tests.

In its official statement, OJK conveyed a number of efforts to restore the national economy by issuing various further stimulus policies, such as:

1. Postponing the adoption of Basel III standards to provide room for capital and liquidity for banks.

2. Removal of the obligation to fulfill the Capital Conservation Buffer of 2.5 percent of ATMR until March 31, 2021, which is also extended to March 31, 2022 to provide capital space for the banking industry.

3. Reducing the minimum limit of the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) to a minimum of 85 percent up to March 31, 2022, which aims to provide liquidity for banks.

4. Postponement of the quality assessment of Foreclosed Collateral (AYDA) to be based on the latest quality until March 31, 2022 to increase capital capacity.

5. Decrease in Allowance for General Earning Asset Losses (PPAP) for BPRs and relaxation of interbank fund placements for BPRs to increase their capital capacity and provide lenient liquidity.

6. Marketing of Investment-Linked Insurance Products (PAYDI) with digital means to maintain sales of insurance products.

7. Loan or financing restructuring policies for MFIs and BWMs to ease the burden on the community of micro business actors. (Ade)