OJK Tightens Bank Liquidity Oversight as Credit Growth Accelerates

RRI.CO.ID, Jakarta - Indonesian banking liquidity remains strong even as liquidity buffers begin to narrow. The Financial Services Authority (OJK) is intensifying oversight of banks with limited buffers as credit growth outpaces the expansion of third‑party funds.

Executive Head of Banking Supervision at the OJK, Dian Ediana Rae, said risk‑based supervision is being directed at banks with liquidity ratios approaching the threshold.

“The OJK is ensuring that these banks have adequate mitigation measures in place to maintain sufficient liquidity and anticipate potential pressures,” Dian said in a written statement in Jakarta on Monday, September 21, 2026, as quoted by Antara.

OJK data shows that the banking sector’s liquidity coverage ratio (LCR) reached 187.50 percent in July, well above the minimum requirement of 100 percent. The ratio of liquid assets to non‑core deposits (AL/NCD) stood at 102.45 percent, while the ratio of liquid assets to third‑party funds (AL/DPK) reached 23.10 percent.

Meanwhile, the loan‑to‑deposit ratio (LDR) rose to 88.38 percent in July, both month‑on‑month and year‑on‑year, reflecting faster credit growth than third‑party funds.

Dian said the increase in the LDR cannot be used as a sole indicator of liquidity pressure. The ratio must be interpreted alongside other indicators and the characteristics of each bank’s business model, funding structure, and intermediation strategy.

Liquidity has tended to level off in recent months, particularly at banks with relatively high credit growth. However, industry liquidity remains adequate, with key ratios still above minimum requirements.

On the policy front, Bank Indonesia (BI) raised incentives under the Macroprudential Liquidity Incentive Policy (KLM), effective September 1, 2026. The policy is expected to give banks additional flexibility in managing liquidity.

The OJK has urged banks to strengthen asset and liability management (ALMA), maintain high‑quality liquid assets, conduct regular stress tests, and prepare contingency plans. These practices must be carried out in line with prudential principles and sound risk management. ***