PT Bank Mayapada Internasional Tbk : Bank Mayapada Liquidity Coverage Ratio (LCR) Report Q4 2022

LIQUIDITY COVERAGE RATIO (LCR) REPORT

Bank Name : PT Bank Mayapada Internasional Tbk

Position : Quarter 4 2022

(In Million IDR)

Final amount after

Num

Component

Amount

haircut, run-off or rate

inflow rate

1

The number of points used in the LCR calculation

20 Days

HIGH QUALITY LIQUID ASSET (HQLA)

2

Total High Quality Liquid Asset (HQLA)

30.426.215

CASH OUTFLOW

3

Retail deposit and Unsecured wholesale funding

51.596.044

5.157.469

a. Stable deposits

42.705

2.135

b. Less stable deposits

51.553.339

5.155.334

4

Corporates funding

21.621.832

8.091.983

a. Operational deposits

3.136.824

703.522

b. Non-operational deposits

18.485.008

7.388.461

c. Unsecured debt issuance due in 30 days

5

Secured funding

6

Additional requirement

4.514.089

1.715.371

a. Net known derivatives payables

24.411

24.411

b. Undrawn committed liquidity facilities to other financial institutions including securities firms,

insurance companies, fiduciaries, and beneficiaries

c. loss of funding on structured financing activites

d. Currently undrawn committed credit and liquidity facilities

2.982.535

294.008

e. Other contractual obligations to extend funds to

1.391.152

1.391.152

f. Other contingent funding obligations

115.991

5.800

g. Any other contractual cash outflows

7

TOTAL CASH OUTFLOW

14.964.824

CASH INFLOW

8

Reverse repo and securities borrowing

9

Contractual inflows by counterparty

725.007

388.003

10

Other contractual cash inflows

24.402

24.402

11

TOTAL CASH INFLOW

412.405

TOTAL ADJUSTED VALUE 1

12

TOTAL HQLA

30.426.215

13

TOTAL NET CASH OUTFLOWS

14.552.419

14

LCR (%)

209,08%

Keterangan:

1Adjusted value is calculated after the substraction of haircut, run-off rate, and inflow rate as well as the maximum limit of HQLA components, such as the HQLA Level 2B and HQLA Level 2 maximum limits and the maximum cash flow limit calculated in the LCR.

QUALITATIVE ASSESSMENT OF LIQUIDITY CONDITION (QUARTERLY)

Bank Name

: PT Bank Mayapada Internasional Tbk

Position

: Quarter 4 2022

Analysis

Based on calculation, Bank Mayapada Liquidity Coverage Ratio (LCR) as of Quarter 4 2022 increase by 30.74% from previous position (Quarter 3 2022) from 178.34% to 209.08%. The ratio is above minimum POJK requirement, which is minimum 100% LCR ratio based on POJK 42/POJK.03/2015.

LCR Assessment Component:

LCR Bank as of Quarter 4 2022 is from the comparison of High Quality Liquid Asset (HQLA) with Net Cash Outflow projection with the following details:

  1. Bank Mayapada Total HQLA as of Quarter 4 2022 increase by 25.36% comparing to Quarter 3 2022 from 24.27 trillion IDR to 30.43 trillion IDR. Bank HQLA composition still dominated by HQLA Level 1 with the biggest composition from placement BI with amounted after haircut is 14.63 trillion IDR (48.07% from the total of HQLA Level 1) that increase by 1.26% comparing to Quarter 3 2022 from 14.44 trillion IDR. Bank Mayapada HQLA Level 1 consist of Central Bank (BI) Facility, and Central Bank (BI) Current Account.
    In Quarter 4 2022, Bank does not have any liquidity reserve in HQLA Level 2A and 2B because the securities exposures that Bank Mayapada owned is Financial Institution, which is not included in requirements component of HQLA Level 2A and Level 2B. This condition same as with previous position LCR Report (Quarter 3 2022).
  2. Bank Mayapada Net Cash Outflow as of Quarter 4 2022 increase by 6.93%. Quarter 3 2022 from 13.61 trillion IDR to 14.55 trillion IDR. The value of net cash outflow projection that bank owned from subtraction between cash outflow and resulted cash inflow estimation.

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3. Bank Mayapada cash outflow estimation as of Quarter 4 2022 increase by 7.98% comparing to Quarter 3 2022 from 13.86 trillion IDR to 14.96 trillion IDR, and cash inflow estimation increase by 65.33% comparing to Quarter 3 2022 from 249.44 billion IDR to 412.41 billion IDR.

In Quarter 4 2022, the cash outflow projection is estimated to occur over next

30 days after run off rate calculated consists of the following components:

  1. Retail Deposit and Unsecured Wholesale Funding increase from previous position (Quarter 3 2022) from 4.69 trillion IDR to 5.16 trillion IDR.
  2. Small and Micro Business Funding increase from previous position (Quarter 3 2022) from 151.78 billion IDR to 205.23 billion IDR.
  3. Corporates Funding increase from previous position (Quarter 3 2022) from 7.18 trillion IDR to 8.09 trillion IDR.
  4. Currently Undrawn Committed Credit Facilities increase from previous position (Quarter 3 2022) from 251.71 billion IDR to 294.01 billion IDR.

From data above can be concluded that the funding source is still dominated by same source from previous position (Quarter 3 2022) that from Corporates Funding that increase from previous position (Quarter 3 2022) by 0.52% from 59.23% to 59.75% from total cash outflow. The funding source composition from Retail Deposit decrease from previous position (Quarter 3 2022) by 0.62% from 38.70% to 38.08% from total cash outflow. The lowest funding source composition come from Currently Undrawn Committed Credit Facilities that increase from previous position (Quarter 3 2022) by 0.09% from 2.08% to 2.17% from total cash outflow.

Whereas for cash inflow projection of Quarter 4 2022 that estimated for the next 30 days after the inflow rate calculation only from Contractual Inflows by Counterparty that dominate by Non-Financial Corporate Customers of 275.33 billion IDR or increase by 37.05% from previous position (Quarter 3 2022) amounted to 200.89 billion IDR.

Bank Liquidity Management

In Quarter 4 2022, Bank has met the LCR level in accordance with minimum requirements that indicating that the management of Bank Mayapada liquidity is

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adequately managed.

Generally, Bank liquidity risk is still the same as previous position (Quarter 3 2022) that dominated with withdrawal by Corporates Funding, whereas for the derivatives exposure component does not exist both in cash outflow and cash inflow because Bank Mayapada product’s and transaction are categorized as plain vanilla, so Bank has not had that type of exposures.

In order to maintain and manage the liquidity, Bank identifies, measures, monitorize and controlling the liquidity risk with adequately that supported by supervision of the liquidity related divisions towards Bank Mayapada liquidity condition through daily money market report, securities, maturity gap, liquidity gap, liquidity report and monthly ALCO meeting. With all of reports and the information, the board of Commissioners and Directors can monitorize the dynamics of Bank liquidity condition and maintain the quality of liquidity risk above the minimum requirements.

Bank Mayapada has prepared strategic steps to mitigate liquidity risk with policies and procedures that regulate Bank liquidity which part of risk management policies such as Liquidity Management Guidelines, ALMA Guidelines, and Bank Contingency Funding Plan Policy.

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