BANK Mandiri ensures that current liquidity conditions are still solid despite exchange rate fluctuations caused by the current economic and geopolitical turmoil.
Bank Mandiri Corporate Secretary Teuku Ali Usman assessed that in managing liquidity his party has implemented a strategy for optimizing asset and liability management which is monitored prudently while still implementing all aspects of risk management. This includes market and liquidity risks.
“We are committed to continuing to optimize asset and liability management in order to anticipate market fluctuations that occur,” said Ali in an official statement, Friday (19/4).
This is in line with the statement from the Ministry of BUMN that state-owned companies can anticipate money market turmoil due to current geopolitical developments, by proportionally maintaining the portion of credit affected by rupiah volatility, interest rates and oil prices.
The bank with the gold ribbon logo also assesses that Bank Mandiri’s fundamental condition is in a healthy condition with a strong level of capital which can act as a buffer if there is a shock to the economy and financial markets.
Ali added that the current strengthening of the US dollar exchange rate against the rupiah has indirectly had an impact on the collection of foreign currency third party funds (DPK) to support business expansion and the company’s liquidity needs.
Also read: Rupiah Successfully Crushes US Dollar at IDR 15,623
As of February 2024, Bank Mandiri has recorded deposits of IDR 1,209 trillion, growing 5.77% yoy with foreign exchange deposits recorded at US$ 17.3 billion.
The collection of foreign currency deposits was mainly driven by foreign exchange demand deposits which grew by 4.35% to reach US$ 12.7 billion. Meanwhile, the foreign currency loan to deposit ratio (LDR) position can be maintained below the 90% level.
“In the future, to encourage the growth of foreign exchange deposits, especially for exporter customers, Bank Mandiri provides wholesale and international banking products, trade solutions and comprehensive cash management services through Kopra by Mandiri and Livin’ by Mandiri,” said Ali. (Z-6)
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