BARISAN.CO – People’s Economic Banks (BPR) play an important role in contributing to society beyond the use of commercial banks. BPRs have a special market that is different from general banks, dominate in regions and become iconic financial institutions in each region.
BPR growth analysis involves liquidity factors (Third Party Funds, Credit, LDR/Loan to Deposit Ratioand FDR/Finance to Deposit Ratio), as well as risk ratios such as NPL (Non Performing Lending) and NPF (Non Performing Finance).
According to data from the Financial Services Authority (OJK), the performance of BPR and BPRS shows quite different growth. In terms of credit distribution, BPR recorded a realization of 137.487 billion in August 2023, growing 9.89% YoY, a figure higher than the growth in credit distribution by commercial banks of 8.93% YoY.
BPR fund collection reached 152.949 billion, growing 8.13% YoY. Even though annual credit growth is higher than the collection of Third Party Funds (DPK), the Loan to Deposit Ratio (LDR) ratio is still low, namely 77.03%.
The LDR ratio measures the liquidity of raising funds and lending, and the normal ratio is 85% – 90%. Thus, it can be concluded that BPR has not optimized credit distribution, considering the composition of credit and deposits collected.
The NPL Ratio is Getting Higher, BPR Needs to Evaluate the Risk of Bad Credit
Analysis of the risk of non-performing loans (NPL) in BPR credit distribution shows an upward trend, reaching the highest peak in the last five years in August 2023, namely 10.13%. There needs to be continuous improvement regarding the bad credit ratio.
As a financial institution, the People’s Economic Bank (BPR) has a big responsibility for the risks it faces. One of the risks that must be monitored and evaluated continuously is credit risk. This is important because BPR can experience large losses if there are customers who experience bad credit or NPL (Non-Performing Loan).
The bad credit ratio or NPL is one of the main indicators in assessing the quality of credit risk at BPR. This ratio shows how large the number of non-performing loans owned by the BPR is compared to the total credit provided. If this ratio increases, this indicates that the potential for credit risk at the BPR is increasing.
Therefore, BPR must always evaluate the quality of risks related to the NPL bad credit ratio which is always increasing. Evaluation by compiling data and analyzing the level of credit risk for each customer. BPRs must also look at the economic conditions in their operational areas, and anticipate if there is potential for greater credit risk.
Apart from that, BPR must also always improve the quality of risk management to handle credit risk. By increasing understanding and awareness of credit risk in every part of the company. BPR must also involve all related parties in the risk management process to be able to take early preventive action.
In conclusion, BPR must always be prepared to face the ever-increasing NPL bad credit ratio. Therefore, evaluating the quality of credit risk must be continuous and improving risk management in order to reduce potential credit risk in BPRs. This is an effective way to maintain BPR financial stability and ensure the continuity of BPR business in the future. [Yat]
2023-11-15 16:39:16
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