BRI Reallocates Securities to More Liquid Instruments to Maintain Liquidity

Bank Indonesia (BI) said that the banking industry is currently still being shadowed by tightening liquidity.

This is reflected in the credit rate growing rapidly, reaching 11.83% yoy, while third party funds (DPK) are lagging behind with growth of only 5.80% on an annual basis in January 2024. 

BI Governor Perry Warjiyo said that in responding to this gap, banks are taking two ways, namely diverting liquid assets from securities and strengthening non-DPK funding. 

This gap between credit growth and DPK is also visible at PT Bank Rakyat Indonesia Tbk ( BBRI ).

Based on the performance presentation quoted (23/2), credit distribution grew rapidly 11.2% yoy to IDR 1,266.4 trillion, DPK collected amounted to IDR 1,358.3 trillion or grew 3.9% yoy.

Nevertheless, BRI continues to maintain liquidity conditions through adequate capital. This is reflected in BRI’s LDR at the end of last December of 84.22% and the capital adequacy ratio (CAR) at an adequate level of 27.3%.

“In the midst of tight national banking liquidity which is the impact of the era of high interest rates, BRI has succeeded in managing liquidity prudently , ” said Friday, (23/2).

Of course, BRI also makes efforts to ensure liquidity remains safe, one of which is by managing non-DPK funding sources and non-loan assets, namely reallocating securities to more liquid instruments.

According to the company secretary, this was done as a strategy to support the liquidity needs of the core business, namely encouraging growth in loan disbursement.

BRI consistently implements the “ just right liquidity ” strategy to maintain liquidity at an optimal level.

Hendi gave an example that during the pandemic there was excess banking liquidity in the market and what BRI did was change the funding structure by focusing on low-cost funds or CASA. As a result, the CASA composition increases and the CoF (Cost of Fund) is more efficient.

With the efforts made, including maintaining adequate capital, BRI has again set quite aggressive targets this year. BRI is optimistic that it can encourage credit distribution to grow by 10%-11% annually. 

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