OJK: Almost Half of Bank Loans Are Restructured

Summary

The Financial Services Authority (OJK) has officially issued two regulations to extend the relaxation period for banking credit restructuring from March 2022 to March 2023: OJK Regulation (POJK) Number 17/POJK.03/2021 on changes to the National Economic Stimulus as a countercyclical policy for the impact caused by the COVID-19 and POJK Number 18/POJK.03/2021 on policy changes for conventional and sharia secondary banks due to COVID-19.

The chairman of the OJK Board of Commissioners Wimboh Santoso explained that the extension maintained the economic recovery momentum and stimulated bank lending growth. “The extension of the countercyclical policy is an anticipatory measure. It is also a follow-up step to optimize banking performance, maintain financial system stability, support economic growth, and keep the momentum of improving banking indicators. Besides, it is to prepare banks and debtors to return to normal slowly and prevent potential turmoil once the policy ends," Wimboh elaborated in a press release on Thursday (9/16).

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