OJK: Ensure Banking NPL in Papua Remains Below Five Per Cent

Jayapura (ANTARA) - The Financial Services Authority (OJK) of Papua Province has ensured that the Non-Performing Loan (NPL) ratio for banking in this region remains below 5 per cent, even though the resolution of problematic credits faces several obstacles.

The Head of OJK Papua Province, Fatwa Aulia, stated in Jayapura on Wednesday that based on OJK’s monitoring, local banks are still able to maintain credit quality despite economic conditions currently affecting the process of resolving bad debts.

“From the perspective of credit penetration, it continues to proceed, and banks are still able to keep the NPL position below 5 per cent,” he said.

According to Fatwa, the current economic situation is impacting the process of resolving non-performing loans, particularly regarding the execution of collateral.