Improving Banking Supervisory Mechanisms
In the OIC Member Countries
97
Figure 66: Loan Decomposition, Indonesia
Source: Bankscope
Bank scope database cannot classify an important portion of Indonesian credit portfolio.
Banking sector has a relatively small corporate and commercial loans which may be related to
the classification of the loan portfolio.
Figure 67: Securities Decomposition, Indonesia
Source: Bankscope
Another different feature of Indonesian banking sector is its security portfolio decomposition
as 26% of the security portfolio is held as a trading portfolio. This observation indicates that
market risk component of risk weights tend to be more volatile than others. A very small
portion of this security portfolio is held at for long term investment purposes which may be
related to the accounting regulation in Indonesia.
Other Consumer
Retail Loans (%
of G. Loans)
12%
Corporate &
Commercial
Loans (% of G.
Loans)
10%
Other Loans (%
of G. Loans)
78%
Loan Decomposition
Trading Sec. & at
FV
through Income
26%
Available for
Sale Securities
49%
Held to
Maturity
Securities
25%
Securities Decomposition