BBCA - Remains conservative when other banks offer high yields

BBCA - Remains conservative when other banks offer high yields Bank Central Asia (BBCA) or BCA has chosen a conservative strategy in the midst of tight banking liquidity competition, by providing relatively lower yields than other banks. President Director of BCA, Yahya Setiaatmadja, said that currently the company does not need to aggressively raise interest rates on deposits. The reason, said Mr Setiaatmadja, is that BCA's liquidity is still safe. ‘In the market there are those who are very conservative in giving interest on deposits and even current accounts, some dare to give 5-7%. What is that a sign of? Yes, because they need liquidity,’ said Yahya. By 2024, BCA's LDR or Loan-to-Deposit Ratio will be at 78.4%. This position, according to Yahya, is still quite stable. So BCA can maintain a balance of credit expansion and liquidity, without having to compete with high deposit rates. ‘In general, it is quite liquid, but bank by bank it will be different,’ Yahya explained. Currently, BCA only charges 3% interest per year for deposits under IDR2 bn, with a tenor of 1-3 months. Meanwhile, for deposits above IDR5 bn to IDR100 bn, BCA offers an interest rate of 3.25% per year. (Source : Idn Financials)