Regarding SLIK, BTN CEO Emphasises That Credit Assessment Remains the Bank's Prerogative
Jakarta (ANTARA) - The President Director of PT Bank Tabungan Negara (Persero) Tbk, Nixon LP Napitupulu, has emphasised that credit assessment remains the prerogative of the bank, despite the relaxation of SLIK, because financing decisions are entirely the bank’s responsibility in maintaining risk quality.
Previously, the Financial Services Authority (OJK) decided that the information to be displayed in the Financial Services Information System (SLIK) report would be credit or financing with a nominal value above Rp1 million, either based on the ceiling or outstanding debit for each debtor.
“I often say the same thing and I will consistently say the same, that let the bank make the credit decision. Because the credit decision ultimately is the bank’s responsibility and the management’s responsibility if anything happens,” said Nixon in response to reporters’ questions during a press conference in Jakarta on Wednesday.
In general, Nixon said that his side respects the latest policy set by the regulator because it stems from the needs of the Ministry of Housing and Settlement Areas (PKP) as well as housing associations.
However, he emphasised that the bank has room to assess selectively, especially for debtors with loans below Rp1 million, whether they are victims of the system or reflect payment character.
He gave an example that if a debtor has many small loans with bad quality, this can indicate risky credit behaviour, so they are not automatically eligible for new financing.
“We hear that many below Rp1 million have more than one account. So, if someone has 30 accounts, (with credit) Rp200 thousand, Rp300 thousand, all below Rp1 million. But all are NPL. Is such a person eligible? The question is, if Rp200 thousand is not paid, how can we give hundreds of millions? If it concerns character,” explained Nixon.
He added that the impact of the SLIK relaxation policy on adding subsidised mortgage (KPR) debtors is still uncertain.
Nixon also emphasised that assessments must still be done on a case-by-case basis, considering each debtor’s data and profile.
“So back again, the judgement or decision should be left to the bank, because the bank understands very well what the decision should be like,” he said.
Meanwhile, BTN’s Risk Management Director, Setiyo Wibowo, added that in banking practice, credit assessment refers to the 5C principles, namely character, capacity, capital, collateral, and condition.
SLIK, explained Setiyo, is only one indicator to see the debtor’s payment history and behaviour, so it cannot be the sole basis for credit decisions.
Even if the credit history is good, he said that applications can still be rejected if the payment capacity is inadequate, for example, income is insufficient to pay instalments.
In addition, the debtor’s capital ability is a consideration, reflected in the ability to save or the amount of down payment owned.
The collateral factor is also an assessment aspect, including the location and risk level of the asset, as well as economic conditions that can affect the debtor’s future payment ability.
“That is from the risk management side. So that (SLIK) is not our only indicator for credit approval,” said Setiyo.