Lower Credit Restructuring, Are Banks Safe Yet?
The government has issued several policies to save the banking industry. Recently, Indonesia Deposit Insurance Corporation (LPS) has issued LPS Regulation (PLPS) No.3/2020, which regulates the mechanism and procedure for placing funds by LPS at banks, other than systemic banks (BSBS) which are declared as failed banks.
"The LPS liquidity is sufficient for the fund placement program to banks with special supervision," said LPS Board of Commissioners Chairman Halim Alamsyah, last weekend.
Meanwhile, credit restructuring is still ongoing. As of July 13, 2020, there were 100 banks implementing loan restructuring to 6.75 million debtors valuing at Rp 776.99 trillion.