- Too lax banking regulations, especially since the October 1988 Package digulirkannya (Pakto 88). This rule allows banks to establish measures so easily, so that in a short time, the number of banks mushroomed.
- Banks and real sector increasingly integrated into the fabric of ownership of a person or group of people who are actually sama.This condition not bring too much negative impact if the rules given upheld.The condition worse business practices covered by a closed political system is authoritarian and corrupt . Thus, when shocks occur at the joints automatic political business buildings, including banks, also shaky.
ANALYSIS OF CONDITIONS IN BANKING NATIONAL 2009
During the period Februari-June 2008 monthly rate of credit growth was recorded at nearly 4 percent, this figure dropped to only about 2 percent in the period from July to December 2008.
Entering 2009, credit growth minus 2.1 percent. The fall in growth rate almost certainly will also participate hoist up the number of non performing loans (NPL).
The cause of the weakening of credit growth is seretnya liquidity. One thing among others indicated the reduction is more than twice the excess liquidity in the economy that kept the Bank Indonesia Certificates (SBI), BI facilities, and fine tuning operation (FTO).
Recent weeks, liquidity of the economy is a little bit helped by the injection of foreign exchange from countries that do billateral swap agreement with Indonesia, like China. Additional funds of 12 billion U.S. dollars are also scheduled to be produced if the commitment of the ASEAN Plus 3 can be realized. Various shots of this exchange will directly reduce the pressure on domestic liquidity through the mechanism of core money. In addition, injections from outside, the traffic flow of domestic liquidity is also likely much helped by the democratic party election which is now celebrated hinggar noise.
Unfortunately, the increased flow of liquidity not necessarily be translated in credit expansion. The problem, the global crisis also led to more akutnya domestic banking market segmentation, which caused the commercial mortgage interest rates come down hard (Read: Deviation BI Rate and Interest Rate Credit).
Various efforts BI attempted breakthrough to overcome this problem, including the effort to create a pooling fund, not encouraging signs. Banks are still reluctant to lend each other funds, because the risk profile of each of which has not fully transparent. Comprehensive solution banking market segmentation is likely to wait a little longer, until the legitimate enactment of the Bill Financial System Network Security that until this was still in the House.
With a variety of problems, not surprising that the rate of credit growth in 2009 a cumulative sepnajang be slowing in the range of 15 percent percent. Similarly funds with an estimated rate of third parties which only 11 percent.
However, so far, slowing credit growth and NPLs pemburukkan not seriously affect the domestic banking system fundamentals as a whole. On average, domestic banks still have a capital adequacy ratio (Capital Adequacy Ratio – CAR) is more than enough, by 17 percent. This figure is well above the minimum rate of 8 percent. Large capital cushion allows domestic banks to absorb the various risks that may arise during 2009. In early 2009, the level of NPLs is still relatively under control in less than 5 percent, although rates increased slightly from 4 percent in late 2008.
A good fundamental banking is a highly valuable capital to sail in 2009. Of course, at the level of banking operations, there needs to be more effort to improve efficiency – which is still considered low enough where the ratio is still BOPO for 80s – as well as risk management of each bank. Because of the recent experience there, in the case of Indover and Century Bank, the collapse of a bank is often caused by risk management in shambles even criminal.
Simultaneously, improvements in these micro-scale should be accompanied by efforts at the macro level of banking consolidation. Consolidation is often conducted through a merger in addition to reducing the problems of the banking market segmentation, will also reduce the burden of monitoring the monetary authority.
Other efforts at the macro level needs to be continued and even strengthened the governance policies berhatihati (prudential regulation), including in terms of derivative transactions and foreign exchange which has been adopted. Policy of this BI is one who has to save the national banking system so far, so need to be continued and not just stretched.
In addition to improving risk management and governance of banks, it’s good BI also provides guidance for sectoral credit expansion as a banking operational instructions. This guidance must be specific and must be different in each region. At this point, BI offices scattered in almost all corners of the archipelago should difungsionalisasikan as tombang edge in providing the local nature sectoral.
The existence of Indonesian banks will be strongly influenced by the ability to read the changes in the external environment, both at national and internasional.perubahan which are noteworthy:
- Change the structure and character of the national economy as a result of structural changes in post-crisis incentives.
- Implementation of regional autonomy.
- The phenomenon of globalization and regionalization.