BCA's Setiaatmadja on Banking Risk, Rate, Liquidity

The transcript discusses risk management strategies for banks, focusing on funding and investment risks. It highlights Bank Central Asia's (BCA) approach to mitigating risks through credit diversification and liquidity management. BCA's market position is maintained by focusing on customer needs and digitalization. The bank's digital banking strategy targets millennials, with plans for future profitability before considering an IPO. The outlook for interest rates in Indonesia is influenced by US rates, with expectations of stabilization or decline.

What is a key strategy for banks to manage funding risks?

• Spreading out funding sources

• Investing only in long-term papers

• Ignoring interest rate fluctuations

• Relying on a few large investors

How does BCA manage its credit risk?

• By offering high-interest loans

• By reducing CASA accounts

• By limiting credit and diversifying by industries

• By focusing on a single industry

What percentage of BCA's funding is represented by CASA?

• 95%

• 82%

• 65%

• 50%

What is a reason for BCA's strong market position?

• Focusing only on long-term investments

• Reducing digital banking services

• Customer insensitivity to interest rates

• High interest rates for customers

What is BCA's loan to deposit ratio compared to the industry average?

• Equal to the industry average

• Higher than the industry average

• Lower than the industry average

• Not applicable

What is BCA's approach to its digital bank before considering an IPO?

• Focus on immediate profit

• Ensure consistent profitability over time

• Expand rapidly without profit

• Sell a stake immediately

How does Indonesia's interest rate trend compare to the US?

• Indonesia raises rates less than the US

• Indonesia does not change rates

• Indonesia raises rates more than the US

• Indonesia follows the US exactly