Possible Recession, This is Agus Marto's Message to Young CEOs and Bankers
Jakarta, Infobanknews.com - Leaders and their executive management in the financial sector and state-owned enterprises (BUMN) must anticipate the impact caused by the global recession which is predicted to occur in 2023. Although the Indonesian economy is relatively safe with economic growth of around 5%, but the banking sector will face an unstable global financial market due to the strengthening of the US$ currency and the occurrence of flight to quality.
Agus DW MArtowardojo, a senior banker who has successfully led PermataBank and Bank Mandiri, reminded bankers to be able to catch the signal of any changes and that one of the most important focuses to deal with the risk of a global recession is to keep liquidity within the specified safety level.
"Banks must have a crisis protocol that is ready to be executed if there are conditions that impact the level of liquidity so that banks can maintain liquidity to maintain customer confidence," said the former Minister of Finance (2010-2013) and Governor of Bank Indonesia (2013-2018) who is now the President Commissioner of Bank BNI.
Agus added that banks must also pay attention to the Covid stimulus which will mature in March 2023, although it may still be selectively extended. "Banks need to know which segments have a very large effect on loan at risk, which reaches 18 percent, which can be downgraded to NPL," said the experienced banker in leading crisis resolution and consolidation in the banking industry.
As for the young bankers, Agus reminded them to continue to improve their knowledge, skills, including social skills, build character and discipline. "Young bankers must also be resilient and able to compete with market developments that are very dynamic, the current digital era makes many players in the banking industry not only dominated by conventional banking," said Agus, who is also the Expert Board for Infobank Magazine.
What impacts should banking CEOs anticipate to face the risk of a global recession in 2023? How to prevent digital transformation from failing and causing a crisis? What competencies do young bankers need to be successful? Read the full explanation of Agus Martowardojo in a special interview with Karnoto Mohamad from Infobank in Infobank Magazine Number 535 November 2022. (*)