BI Calls on Banks to Take Risks
Monday, 15 January, 2007 | 16:35 WIB

Tempo Interactive, Jakarta: Bank Indonesia (BI) has called on banks to dare to take risks in disbursing loans to non-consumer sectors.

So far, banks have tended to disburse loans to consumer sectors because they are considered as having minimum risks.

The central bank said it considered that the decreasing rate of the non performing loans (NPL) ratio should make banks more confident in disbursing loans to high risk sectors such as the industrial and corporate sectors.

“We do not need bankers who avoid risks. Instead, we need those who would like to manage the risks,” said Muliaman Hadad, a Deputy Governor of BI, last week in Jakarta.
Muliaman said that principally the banking business is involved in managing risks.

This is the reason of why the implementation of risk management in banking cannot be avoided.

“Especially now, the aftermath of economic crisis of 1997,” he said.

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