Banking - OJK is optimistic that the quality of MSME credit will improve

Banking - OJK is optimistic that the quality of MSME credit will improve At a time when the credit quality of the MSME segment is not good, the Financial Services Authority (OJK) remains optimistic that the NPL ratio for MSME credit will remain maintained until the end of the year. At least, this looks at the existing trend. As of June 2024, OJK recorded that the gross NPL of MSMEs was 4.04%, which was recorded to have decreased compared to May 2024 of 4.27%. In the same period, MSME credit LAR continued to experience a downward trend, namely to 13.50% from May 2024 at the level of 13.83%. Plus, this is getting closer to the pre-pandemic level at the end of 2019 at 12.74%. "Even though the NPL is still increasing yoy," said Chief Executive of OJK Banking Supervision Dian Ediana Rae, Sunday (11/8). Dian also said that the trend of improvement, both NPL and LaR, indicates that in the future the quality of MSME credit will remain maintained and even improve, of course with support from various parties. (Source : Kontan)