Friday, August 14, 2009

Bankers worry more about Moody's than people

Government officers, bankers, and central bank officers were pissed off by Moody's negative outlook on Indonesian banking. They worry more on the rating agency's view that what Indonesian people think of them. Pathetic! 
These guys immediately responded Moody's "view", but pay little attention to significantly bring back the banking system as an intermediary for economic and social development.
Bankers immediately cut rates for people's saving accounts or time deposits whenever Bank Indonesia cut the benchmark rate. But they will keep postponing lending rates cut. They always argued that their "cost of funds" were too high. But in reality, banks are the most profitable sector of the economy. Take a look at the first half 2009 results of major banks.
BCA posted net profit of Rp3.3 trillion in six months, surged 35.9% from the same period last year. BNI reported net profit of Rp1.2 trillion, skyrocketed by 175%. Bank Mandiri recorded net profit of Rp2.93 trillion, increased 12% from the same period last year.
So, when all other sectors posted significant drop in profit margin, banks reported historic high of net  profit. When lots of people lost their jobs, because their employers suffered from paying significantly higher interest rates than their peers in other countries, the bankers are busy to write complaint letters to Moody's.
Not that we agree with Moody's. In fact, we also hate domination of rating agencies on "our outlook", because one small change in the "rating" may cause millions of people losing jobs. But it's just too sad that our bankers would respond quickly agencies like Moody's than those who provide "cheap funds" and pay "costly interests" to their huge profits. 




Blogger Kahlil said...


August 15, 2009 9:16 PM  

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