Bank lending to the state-owned trade agency (BUMN) sector is viewed to be near the optimum lending restrict (BMPK) of 30% of capital.
Chief Economist at PT Bank Central Asia Tbk (BCA) David Sumual mentioned that whilst referring to a couple of monetary statements of state-owned enterprises, its skill to borrow from banks was virtually at its peak. Likewise banks in lending ought to follow the LLL rules.
Get contemporary funds, Jiwasraya at this time can pay a maturity policy
According to him, the optimum restrict of credits score to state-owned firms by means of way of 30% could be very a lot in accordance with the prudential idea of every bank. "Banks truly ought to no longer have the danger of concentration (focusing on one debtor), if it has handed the LLL limit, there could be a danger of concentration," he advised Kontan.co.id, Sunday (23/6).
Even according to him, the LLL regulation issued by means of way of the Financial Services Authority (OJK) refers to the financial disaster that happened in 1998. At that time, banks didn't have an LLL rule, meaning that loans have been merely focused in sure firms or trade groups.
This is what triggers the occurrence of over-leverage on monetary institution price range so that whilst a disaster occurs, the bank's concern loans grow to be mounting. According to David, the regulator is these days having problems in loosening the LLL guidelines resulting from the excessive risk.
One answer according to David is to inspire the function of the personal sector in implementing Government projects. "The function of the personal sector ought to be encouraged, so that in phrases of funding and credits score danger it's extra distributed," he continued.
Likewise, Samuel Aset Manajamen Economist Lana Soelistianingsih mentioned that the 30% LLL which had been observed was a primary rule used globally. "The LLL that has been limited is the guidelines of the recreation (best practice) within the international of finance, if it exceeds that rule there will unquestionably be risks," he mentioned
Lana also doesn't suggest that the LLL take delivery of incentives or easing, simply due to the fact it's no longer in accordance with the precautionary principle.
Even according to him, the area for the boom of monetary institution credits score nonetheless stays open regardless of the LLL provisions. Because, according to Lana, banks can seem for different sectors and firms to aid credits score growth.
"Banks ought to seem for different debtors (if they have approached the LLL), indeed, now in state-owned firms there's a actually excessive want for government projects," he continued.
On the different hand, state-owned firms is also capable to diversify funding for infrastructure projects, no longer simply relying on banking, one among that's to seize money within the market such simply due to the fact the issuance of bonds.