Bank Statistics – Bank Buku (Core Capital Classification)

Peringkat Bank based on Core Capital (Modal Inti)

BUKU 1: Core Capital less than Rp 1 Trillion

• Basic Rupiah intermediary functions for deposit and distribution, trade finance, limited agency/cooperation, limited electronic banking and payment systems, temporary capital participation for credit based or other services, and limited foreign exchange
• Branches only within Indonesia
• No capital participation in other financial institutions
• Must distribute 55% of total credit/financing to productive business

BUKU 2: Core Capital of Rp 1 – 5 Trillion

• Same business activities as BUKU 1, but with higher transaction value
• Branches only within Indonesia
• Capital participation in other Indonesian financial institutions, up to 15% of capital
• Must distribute 60% of total credit/financing to productive business

BUKU 3: Core Capital Rp5 – 30 Trillion

• All types of business activities, in Rupiah and foreign currency
• Branches and representative offices in Indonesia and Asia region
• Capital participation in Indonesian and other Asian financial institutions, up to 25% of capital
• Must distribute 65% of total credit/financing to productive business
  Bank Permata Rp21 triliunan
  Bank DKI Rp7,7 triliun
  Maybank Rp21 triliunan
  Bank BTN Rp21 triliunan
  Bank Mega Rp14 triliunan
  HSBC Rp14 triliunan
  Bank DBS Rp7,6 triliunan

BUKU 4: Core Capital atleast Rp30 Trillion

• All types of business activities, in Rupiah and foreign currency
• Worldwide branches and representative offices
• Worldwide capital participation in other financial institutions, up to 35% of capital
• Must distribute 70% of total credit/financing to productive business
  Bank BRI
  Bank Mandiri
  Bank BCA
  Bank BNI
  Bank CIMB Niaga
  Bank Danamon
  Bank Panin

Bank Statistics – Peringkat Bank

Peringkat Bank, 74% Aset Bank dikuasai 12 bank. Untuk Top 10 data Q2 2022, untuk Top 11-20 data masih menggunakan data 2018.

Mandiri	1785	Maybank	160
BRI	1652	Danamon	153
BCA	1264	BJB	110
BNI	946	Bukopin	102
BTN	381	UOB	92
CIMB Niaga	310	BTPN	87
BSI	277	Mega	84
Permata	229	SMBC	83
OCBC NISP	223	DBS	81
Panin	200	Jatim	55
		Mizuho	51

The truth about (banking) corporate title – a human capital/workforce fundamental problem

Corporate title tend to be mislead. I have read some applicant CV, and 9 out of 10 candidate mention the exactly same skills. Anybody that 1) have been working in the banks 2) have an interest to moving regardless the reason, will tend to have the same CV. What happen with the rest 1? of course did not accepted.

I think this show the real problem within professionals (employee) in the job market (or in employment in general)

1.Retirement age is 45
I strongly believe with this concept, as my friend told me that after 45, you are considered unproductive, as there are many professional that 20 year younger than you that can replace you with 20x cheaper salary. It is not worthed to keep you.

2.Knowledge is worthless
Skill is easy to learn. Everybody is Digital, every body is Agile. Consulting firm is the enemy of the job market. Consulting from shifting from knowledge provider to resources provider. Resources is more valuable than knowledge. Knowledge is worthless.

3.Competition is getting more fierce, more brutal

Faith is a gift
Some soldier have faith in their gun, but they don’t have a faith in victory
Some consultant have faith in their spreadsheet, but they don’t have a faith in profit
Some teacher have faith in their book, but they don’t have a faith in progress
Some people have faith in small things, but they fail to see the big pictures
Some people have faith in GPS but they don’t have a faith in car, in surrounding, in the road

Truth about banking

1.Banking strategies are speculative until they survive a downturn.
2.Analysts and commentators in every generation proclaim the death of traditional banking, but banks and their branches are still here. ref

1.Banks create new money when they lend, which can trigger and amplify financial cycles. (banks fund new loans by creating new deposit money – Schumpeter, 1954)
2.Saving does not finance investment, financing and money creation do. ref

In short banking is speculative business, (Everything-is-theoretically-impossible-until-it-is-done vibe), where you formalize the speculation through risk management. Risk management is pseudoscience and management is basically exploitation -sarcasm mode on.

In personal level, bankers is as honest as other profession
Bad bankers no more? Truth-telling and (dis)honesty in the finance industry ref
Naked Banking: The Truth About Banks and You

Konsultan

Menarik juga melihat orang yang memiliki latar pendidikan (background akademik) yang baik memutuskan untuk bekerja di bidang yang tidak sesuai dengan latar pendidikannya. Contoh lulusan Ilmu Komputer memutuskan menjadi peneliti ekonomi di Bank Sentral (Government Agencies). Dugaan saya kenapa orang tersebut memilih bidang yang tidak sesuai ini adalah karena faktor “pull” dimana Bank Sentral tersebut memberikan benefit yang sangat baik yang bisa menarik orang yang seharusnya punya potensi pada bidang yang lebih sesuai latar belakangnya. Tindakan tersebut sebenarnya tidak tepat karena menciptakan sandera, dimana orang tersebut akan memiliki ketergantungan yang sangat besar pada perusahaan, orang tersebut tidak punya opsi untuk mengembangkan karir diluar perusahaan tersebut. Kontrak seumur hidup. Buruk? tidak juga karena kenyataannya banyak orang yang mengambil pilihan tersebut.

Anak umur 22 tahun mengambil keputusan yang dampaknya hingga lebih dari 30 tahun kedepan mungkin terkesan aneh. Sama anehnya seperti mengambil keputusan untuk menikah di usia muda. Tapi itu menggambarkan cermin ekonomi disebuah system. Organisasi yang kuat akan mengeksploitasi yang lemah, organisasi yang kuat akan membangun sistem yang kuat.

Saya menemukan bahwa Government Agencies merupakan employer yang sangat kuat. Tidak hanya menampung tenaga kerja, tapi juga menggerakkan ekonomi. Untuk menjalankan perannya, Agencies ini membutuhkan kontraktor. Ada kontraktor milik pemerintah -dalam hal ini adalah BUMN, dan ada kontraktor swasta. Kontraktor swasta adalah pengusaha, dimana order terbesar dari kontraktor swasta adalah pemerintah. Setelah Government Agencies, layer berikutnya adalah Corporation, Retail (Productive/SME, Consumptive, Micro)

Prioritas lulusan sarjana atau tenaga terdidik di Indonesia itu diantaranya:
1.Government Agencies: BI, OJK, SKK Migas, Kemenkeu
2.Stateown Companies: Pertamina, Telkom, Bank Mandiri
3.Multinational: Unilever, Nestle, Shell, Toyota, Mitsubishi
4.Swasta-nasional: Astra, BCA, Sampoerna, Indofood

Prospek Karir Insinyur Sipil (ITS)
1.PNS
2.BUMN
3.Kontraktor
4.Konsultan

FMAE ITB
1.Government agencies
2.State-owned enterprises (BUMN)
3.Private companies
4.Academic and research fields
5.Entrepreneur

Quora: Bagaimana rasanya kerja di bidang konstruksi?: Candu

Struktur organisasi

Menurut BIAN Service Landscape, organisasi di Bank sebenarnya hanya terdiri dari 4 fungsi saja yaitu Product, Operation, Support dan Risk/Compliance. Contoh paling efektif saya temui mungkin hanya BRIS, dimana hanya terdiri dari 3 fungsi saja: Product, Operation/Support dan Compliance. Sekilas dari eTOM juga kurang lebih sama: Product, Operation dan Support (Enterprise Management)

Sebelum melangkah lebih jauh, ada sedikit salah kaprah mengenai istilah Director Operation dengan Director Support. Di beberapa perusahaan title Director Operation (COO) seringkali merefer ke Director Business Support (IT, Facility) atau juga bisa disebut Secretary. Sementara Di perusahaan lain sebutan Director Operation sebenarnya merefer kepada Product Operation e.g yang sering terjadi di Bank.

Mari kita masuk perbedaan besar antara organisasi di Bank dan organisasi di non bank.
Bank: CEO, Product Sales, Product Delivery, Product Risk
Non Bank: CEO, COO (running the business/product), CFO (support/corporate functions)

Di Bank, perusahaan yang sehari-hari bekerja dengan uang justru tidak memiliki fungsi keuangan yang kuat, dibandingkan dengan perusahaan non bank yang investasinya bukan atas uang. Untuk perusahaan non bank, untuk menjalankan bisnis juga dibagi menjadi dua bagian Sales/Product dan Delivery (Teknik/Engineering).

12 Jun 2020, Erick Thohir pangkas direksi Pertamina dari 11 menjadi 6 ref

Banking is expensive

Banking is expensive

Banking is expensive. It costs a bank $250 — $400 to open and maintain a bank account for a person 1. Therefore financial inclusion is the opposite idea of banking -to some degree is banking charity. And to be noted, the problem with financial exclusion: more expensive in transactional, more expensive from non-bank institution, no saving. Consumer think banking is expensive, banks thinks is not profitable.

It is interesting that every jargon (buzzword) is fairly old. Financial Inclusion PP 82/2016. Interesting story about pegadaian: As the only state own pawnbroker in the world, est 1746 as Bank Van Leening (VOC), 1811 British, 1901 Sukabumi. 26% revenue is from gold trading?. Interesting story of BCA: BCA has 63% operating-expense ratio (BOPO/OER) the lowest in Indonesia.

Every government initiative is questionnable, the same like every bubble. Most of the analysis I read is only based on the interest.

Gold: Why Do Financial Inclusion Policies Fail in Mobilizing Savings from the Poor? Lessons from Rural South India (Goedecke 2018)

The market power of IBs has significantly declined over time: Islamic Banking, Costly Religiosity and Competition (Azmat 2020)

ref, ref, ref, ref, ref

Wiki: Dick Whittington and His Cat, London streets are paved with gold, Dot-com bubble, Unicorn bubble,

Misleading – Akuisisi Bank

Banking is a short term business. Bank acquire other bank for strategic reason, most likely for corporate purpose, not for business purpose. Bank know very detail when, where and how money should be allocated. That banking guy live and breath money

Rabobank

• Pada 24 Juli 2008, Legal Merger Rabobank Haga, dengan nilai aset 10,2 trilyun. Rabobank mengambil seluruh saham Bank Haga dan Bank Hagakita dengan nilai sekitar Rp 880 miliar yang merefleksikan 3,5 kali nilai buku (PBV). Pada 13 Juli 2006, Bank Haga dan Bank Hagakita memiliki aset gabungan Rp 3,97 triliun per 31 Desember 2005. (78 kantor cabang yang tersebar di Jawa, Bali dan Sumatra bagian selatan, 1.537 karyawan). Arsitektur Perbankan Indonesia (API) pada tanggal 9 Januari 2004, PBI No. 8/16/PBI/2006 tentang Kepemilikan Tunggal pada Perbankan Indonesia (Single Presence Policy).
• 2009, BCA membeli Bank UIB nilai 248 milyar (Bank UIB aset 602 milyar)
• 16 April 2019, BCA membeli Bank Royal 988 milyar (total equitas Bank Royal Rp 334,502 miliar, transaksi sekitar 3x nilai buku)
• May 2019, Rabobank Indonesia tutup
• Pada 12 Dec 2019, BCA membeli dengan Rabobank harga 397 miliar. Pada 9 Juni nilai akuisisi diperkirakan mencapai 799 milyar.

Bank Artos

• Pada Agustus 2019, Jerry Ng HMETD Bank Artos
• October 2019, Artos Gojek bank
• Pada 2 January 2020, diakuisisi 51% oleh Jerry Ng dan Patrick Waluyo sebesar 224 milyar.

Bank BTPN

• Pada 2008, Texas Pacific Group (TPG), melalui anak usahanya TPG Nusantara dan Northstar (perusahaan milik Patrick Waluyo) mengakuisi 71% (1.8T), Jerry Ng dirut. 2009 Mitra Usaha Rakyat,
• Mei 2013, SMBC mengakuisi 24% dengan nilai 9T, 2014 SMBC 40%, 2015 BTPN WoW (Laku Pandai), 2016 Jenius, 2019 97% SMBC.

Bank Danamon

• Sept 2017, Temasek 53%
• 2017 19% MUFJ,
• 2018 40% MUFJ,
• Jan 2019, 72% MUFJ
• 2020, 94% MUFJ

Bank Permata

• 18 Nov 2019, OCBC, DBS dan SMBC dikabarkan tertarik membeli dengan nilai buku 1.7 – 2x. 29 Nov 2019, SMBC dan Bangkok Bank, 13 Dec 2019, Bangkok Bank resmi mengakusisi
• Pada 20 Mei 2020, Bangkok Bank akuisisi 89% dengan nilai 33T (1.63 nilai buku). Bank Permata total aset 167T

ref,ref,ref,ref,ref,ref,ref,ref,ref,ref

Banking Innovation

Apa inovasi di Bank? less people (with AI), less regulatory (regtech), more customer (open API). Lebih detail mengenai Innovation in Financial Services Industry biasanya pada area

• Machine learning: Robo-advisor, Customer Recommendation Engines, Identity Verification
• Natural Language Processing: AML, Fraud Detection, Chatbots and virtual agents
• Deep Learning:
• Cognitive Computing:
• Robotic Process Automation:

Inovasi tersebut secara umum terjadi di seluruh industri seperti Blockchain, namun ada beberapa yang spesifik industri, contohnya adalah Drone di Industri Logistik, Microgrid, Battery and Renewable di Energy.

Image: Startus-insights ref, Bank 4.0 (Brett King, 2018)

Bank Indicators

“The same like GDP, all indicator is simply misleading”

Bank di Indonesia ini “mbulet”, sering kali dibenci karena dianggap terlalu bernafsu mencari keuntungan sebesar-besarnya. Sehingga menyalurkan kredit dengan bunga tinggi, akibatnya kredit yang disalurkan juga rendah. Tapi disisi lain, bank di Indonesia ini dicintai, karena memberikan keuntungan yang besar bagi pemilik dan investornya.

Secara umum, perbankan di Indonesia memang tidak efisien. Mungkin karena pada dasarnya orang Indonesia itu tidak biasa dengan konsep berhutang, terlebih tidak biasa dengan konsep bahwa berhutang itu wajib membayar. Atau mungkin seharusnya kita tidak punya banyak pilihan.

BOPO (OER)
Kesimpulan:
Indonesia Feb 2020: 83.62%
ASEAN: <50%
OJK Max: 85%
Permata 2016: 150.8%
BI Max PBI 13/1/2011 93.25%?

CAR (Capital Adequacy)
Kemampuan perbankan dalam menyediakan dana yang digunakan untuk mengatasi kemungkinan risiko kerugian
Optimism (General view): Semakin besar semakin baik, bank punya cukup modal, bank punya potensi tumbuh, bank aman dari risiko
Pessimism: Semakin besar semakin buruk, bank malas menyalurkan kredit

22,33%, 23.32 (Dec 2018)
ASEAN: 13.6-15.8%, China 11%, India 10.8%
OJK: 8-11%

LDR (Loan to deposit ratio)
Kemampuan bank dalam memenuhi kewajiban jangka pendek (likuiditas) dengan membagi total kredit terhadap total Dana Pihak Ketiga (DPK)
Optimism: Semakin kecil semakin baik, bank punya cukup likuiditas
Pessimism: Semakin kecil semakin buruk, keuntungan bank rendah

92.50%
OJK: 92%
UK 94%, AU 131%, SG 91%

NIM
Low NIM represent efficient financial intermediation process
Indonesia: 4.81%
ASEAN:2-3.5%
OJK Max: 5%
Danamon 2017: 9.3%
SG: 1.8%, AU 2%, UK 2.6%

ROA (Return on asset)
Kemampuan perbankan dalam menghasilkan profit
Kesimpulan: Indonesia, karena tidak efisien, keuntungannya besar
Indonesia: 2.49%
Asia Tenggara: 1-1.5%

CIR (Cost to Income Ratio)
Indonesia 1996-2017: 51.65%
SG: 42%, AU 46%, UK 57%

Cost income ratio (CIR) is not a suitable ratio to determine productivity, Net Interest Margins (NIM) as well as labor costs of a country significantly influence the CIR, and therefore this measurement does not appear to be appropriate when analyzing performance in terms of service production and settlement ref

Interest rate 2016
corporate 11.1%
while retail 12%
mortgage 11%
non-mortgage 12.2%
microloan 19.4%

Summary:
CAR: Semakin tinggi semakin baik: Modal
NPL/NPF: Semakin rendah semakin baik: Kredit Macet
ROA: Semakin tinggi semakin baik: Pengembalian
BOPO: Semakin rendah semakin baik: Biaya Operasional
LDR/FDR: Semakin tinggi semakin baik:

ref,ref,ref,ref,ref,ref

the effect of financial ratio to profitability buku 3 indonesia stock exchange (Kaban 2019)