The extension of the restructuring of the Financial Services Authority (OJK) can reduce the deterioration of credit quality. The projection of the increase in credit increases is increasing in 2023 and is increasingly underlying the banking non -performance loan (NPL). OJK data recorded banking NPLs reaching 2.78% in September 2022. This value continued to decline 3.00% in December 2021. Along with the shrinking credit restructuring from Rp 663.49 trillion to Rp 519.64 trillion in the third quarter of 2023. OJK extends relaxation of loan restructuring affected by Covid-19 until March 2024. This applies to the MSME sector as a whole. Then, special labor -intensive industries for textiles and textile products (TPT) and footwear industry.

Then the accommodation sector, food and beverage business. Continuing restructuring will also apply to businesses in the Province of Bali. Meanwhile, the overall COVID-19 restructuring policy will end in March 2023.

Bank Mandiri Risk Management Director Ahmad Siddik Badruddin said the credit restructuring portfolio was only Rp 45.6 trillion as of September 2022. shrinking from its peak position in June 2021 of Rp 96.5 trillion.

The details, the restructuring of the corporate segment reached Rp 16.3 trillion, commercial 8.5 trillion, SMEs amounting to Rp 6.2 trillion. Then, micro amounted to Rp 6.2 trillion and a consumer of Rp 8.4 trillion.

"Mapping results, 64% of the restructuring portfolio is not eligible to be extended. It will not be a big concern because 82% have started paying their obligations, "Siddik said last week.

He continued, Bank Mandiri has allocated a very adequate reserves for the COVID-19 restructuring portfolio. Siddik said that overall the reserve was around 21.8% while the reserve for the high risk category reached 60.3%.

He projects, this improvement trend will continue along with the increasing purchasing power of the people and the domestic economic growth that remains solid. Bank Mandiri NPL dropped from 3.1% in September 2021 to 2.3% in September 2022. Bank Mandiri will keep the NPL at 2.2% to 2.4%.

BNI recorded an outstanding COVID-19 restructuring of Rp. 59.5 trillion as of September. Down from September 2021 the position of Rp. 78.8 trillion.

BNI Risk Management Director David Pirzada said, from the mapping, only 5% of Covid restructuring debtors were in the high risk category. Then 60% of the high risk debtor is in the sectors extended by the stimulus by the regulator. That is, the potential increase in BNI NPL next year will be more restrained.

"For the reserves, we have conducted a Build Up Reserve that is sufficient in accordance with the risk profile of our debtor. "For the Debtor of Covid-19 restructuring that is included in the High Risk category, we have provided with an average CKPN ratio of 30%," David explained to KONTAN.

He predicts the end of 2022 to 2023, BNI will continue to maintain the NPL Coverage Ratio above 270%. Along with that, BNI will maintain the Lar Coverage ratio above 40%.

The BRI has allocated a reserves to the restructuring portfolio that is not extended to 2024. This is used to anticipate the deterioration of assets. Director of Risk Management Agus Sudiarto said, the BRI COVID-19 restructuring lar reached 7.7%.

The reserves for COVID-19 restructuring reached Rp 29.95 trillion or 25.7% of the lar. Whereas from the mapping that BRI has done so far, only 10% of the total Covid-19 restructuring that really cannot be saved.

So that this bank sees the 25.7% reserve is very sufficient to anticipate the risk in the future without taking into account the target extension earlier.

The BRI NPL as of September 2022 was recorded at the level of 3.14%. It fell from 3.29% in September last year. BRI has allocated a reserve of NPLs of 275.88%, up from 259.7% in September 2021.