Government Measures to Mitigate Covid-19 Risk slide image

Government Measures to Mitigate Covid-19 Risk

4 3 2 1 0 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 5 % Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19- Oct-19- Nov-19 Dec-19 Jan-20 Manageable Credit Risks with Adequate Liquidity % % % 170 160 Liquid Assets to Non-Core Deposits Liquid Assets to Deposits (rhs) 149.38 40 240 220 35 150 200 140 30 180 130 32.31 160 120 25 140 110 120 20 100 100 90 80 threshold LA to Deposit (rhs) = 10% 15 80 60 70 10 40 60 threshold LA/ NCD= 50% 5 20 50 0 40 T T T 0 ■NPL Net Financial Institutions are equipped with ample liquidity while credit risk is still manageable.. The ratios of liquid assets to deposit and non-core deposits remained well above the threshold following banks' cautious appetite for lending. *) Investment adequacy ratios in the insurance industry, both life and general insurance, were maintained above the threshold of 100% and remained steady in December 2020. *) Feb-20 Mar-20 Apr-20 May-20 NPL Gross Life Insurance Banking NPL ratios are well-managed below the threshold, at 3.06% gross and 0.98% net as of December 2020. *) As economic conditions are improving, NPF of multi-finance companies are steadily declining which is at 4% as of December 2020. *) Apr-20 May-20 st 4 3.06 3 2 0.98 1 0 5 UT 60 Source: Financial Service Authority (OJK) *) provisional figures due to the relaxation on financial institutions' report to OJK because of Covid-19 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Jan-19 Feb-19 Mar-19 Apr-19- May-19 Jun-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-19 Aug-19- Sep-19 Oct-19 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 136 General Insurance threshold Investment Adequacy Ratio= 100% Mar-20 4 105.7 203.3
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