The Financial Services Authority stated that the banking industry in the Cirebon, Indramayu, Majalengka, and Kuningan regions of West Java needs to strengthen financing for the productive sector to boost regional economic growth amidst global economic uncertainty.
OJK Chief Executive for Banking Supervision, Dian Ediana Rae, stated in a statement in Cirebon on Saturday that the banking intermediation function must provide real benefits to the public through quality financing.
According to him, the success of the banking industry is not only measured by asset growth, profits, or business expansion, but also its impact on regional economic development.
"Banks must be able to drive economic activity through sound and targeted financing for productive sectors," he added.
He said optimal financing can strengthen the business world, encourage MSMEs to move up a class, create jobs, and improve community welfare.
Dian asked banks in Ciayumajakuning to understand the economic characteristics of each region, so that financing strategies are in line with the superior potential of each region.
"Public funds collected by banks must be re-invested as energy for regional economic growth through financing the productive sector," he added.
He stated that in addition to strengthening the intermediation function, banks also need to maintain the principles of prudence, corporate governance, risk management, integrity, and continue to innovate in the face of economic changes.
