Credit Restructuring Tightening Signal

The Financial Services Authority (OJK) is currently evaluating policies to provide payment relief or bank credit restructuring for customers affected by Covid-19.

The authority urges national banks to be ready to face policy normalization when this stimulus will be withdrawn, including if it is carried out sooner than it should. This is in line with the improving economy and the recent trend of economic recovery. The stimulus is planned to end in March 2023. The Chief Executive of OJK Banking Supervision, Heru Kristiyana, said that the OJK will carefully consider the decision regarding the withdrawal or extension of the credit restructuring policy. This includes conducting intensive monitoring of the banking industry so that it is ready to anticipate policy normalization. "Policies after 2023 will depend very much on the global and domestic economic situation, especially currently what is being observed is the development of the Omicron variant case and its impact," he said yesterday. Heru agrees that the restructuring policy that has been given since the beginning of the pandemic has been well responded to by banks, as well as by customers who are helped by the relief of credit payments, both in terms of interest, tenor, and principal installments. "It is proven that the restructuring carried out by banks was followed by the formation of adequate reserves, so we are sure that, after the restructuring policy is complete, the banks will be ready." The banking industry also regularly evaluates credit restructuring policies and customer repayment capabilities.

|•SOURCE•| Articles :TEMPO | Image :CNN |

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