Jakarta (VNA) – Indonesia is confident in itsfinancial sector’s resilience even under extreme scenarios in the globaleconomy, according to the latest stress tests conducted by the Bank Indonesia (BI),Indonesia’s Finance Ministry, Financial Services Authority (OJK), and DepositInsurance Corporation (LPS).
The results revealed that financial institutionsunder the Indonesian Government’s watch still show resilience, said Indonesian FinanceMinister Sri Mulyani Indrawati at a recent press briefing.
She added that the institutions will remain on guard forsudden changes brought about by geopolitical dynamics.
Indrawati said the tests included "extreme"hypothetical situations, but she did not reveal further details.
Meanwhile, Bank of Indonesia (BI) Governor Perry Warjiyo said that thesetests involve a number of scenarios, such as the US Federal Reserve (Fed)’ssudden increase of interest rates, rising oil prices, geopolitical tensions,and the impact of El Nino phenomenon, recession and divergence in globaleconomic growth.
In a press briefing last month, he said that Indonesia's financial sector hasshown "strong resilience" in the new tests, adding that thisconclusion is made on the basis that capital resources are still solid, baddebt ratio is low, and liquidity is still at a good level.
Last month, BI raised the operating rates, but major banksand analysts held that Indonesia's banking sector can still meet its creditgrowth target thanks to abundant liquidity.
In January, BI forecast that this year’s credit growth mayreach 10-12%. However, the growth slowed down in the middle of the year,leading to the bank’s lowering of its forecast to 9-11% in August.
As of the end of September, Indonesia’s credit growth was8.96%, lower than the rate of 9.06% recorded in August./.
The results revealed that financial institutionsunder the Indonesian Government’s watch still show resilience, said Indonesian FinanceMinister Sri Mulyani Indrawati at a recent press briefing.
She added that the institutions will remain on guard forsudden changes brought about by geopolitical dynamics.
Indrawati said the tests included "extreme"hypothetical situations, but she did not reveal further details.
Meanwhile, Bank of Indonesia (BI) Governor Perry Warjiyo said that thesetests involve a number of scenarios, such as the US Federal Reserve (Fed)’ssudden increase of interest rates, rising oil prices, geopolitical tensions,and the impact of El Nino phenomenon, recession and divergence in globaleconomic growth.
In a press briefing last month, he said that Indonesia's financial sector hasshown "strong resilience" in the new tests, adding that thisconclusion is made on the basis that capital resources are still solid, baddebt ratio is low, and liquidity is still at a good level.
Last month, BI raised the operating rates, but major banksand analysts held that Indonesia's banking sector can still meet its creditgrowth target thanks to abundant liquidity.
In January, BI forecast that this year’s credit growth mayreach 10-12%. However, the growth slowed down in the middle of the year,leading to the bank’s lowering of its forecast to 9-11% in August.
As of the end of September, Indonesia’s credit growth was8.96%, lower than the rate of 9.06% recorded in August./.
VNA
