CIMB Niaga and Allo Bank Respond to Sumatra Disaster with Risk Mitigation Measures

Proactive Measures by Indonesian Banks

CIMB Niaga and Allo Bank are taking proactive steps to support customers affected by the recent disasters in Sumatra. The banks are currently conducting thorough assessments of their debtors in the affected regions to determine the appropriate support measures. Lani Darmawan, President Director of CIMB Niaga, emphasized that the bank has a comprehensive crisis management process in place for various emergency situations.

Assessment and Mitigation Strategies

Both banks are meticulously mapping the impact on their customers and developing tailored solutions to alleviate their financial burdens. Ganda Raharja Rusli, Director of Risk, Compliance, and Legal at Allo Bank, highlighted that the disaster has had a significant impact on their customers in Sumatra. The banks are considering various mitigation measures, including restructuring credit facilities and adjusting financing limits.

Regulatory Framework

The banks' response is supported by OJK Regulation No. 19/2022, which provides a framework for special treatment for financial services institutions in disaster-affected areas. This regulation allows banks to implement simplified asset quality determination for loans up to Rp10 billion based solely on payment timeliness. Additionally, it permits restructured loans to be classified as performing without any ceiling limit, providing significant flexibility for banks to support affected debtors.

Impact on Financial Stability

The proactive measures taken by CIMB Niaga and Allo Bank not only demonstrate their commitment to supporting customers during times of crisis but also contribute to maintaining financial stability in the affected regions. By leveraging the regulatory provisions provided by the OJK, these banks are able to offer necessary relief to debtors while managing their risk exposure effectively.