The Threats of Mounting Corporate Debt

The banking sector is on alert after the emergence of increased credit risk in the corporate segment. In order to mitigate the decline in credit quality, banks are scrambling to form adequate reserves. Additionally, efforts to provide credit relief or restructuring to corporations affected by the pandemic will continue.

 

 

Ghoida Rahmah

August 16, 2021

THE banking sector is on alert after the emergence of increased credit risk in the corporate segment. Bank Mandiri, for example, is continuing its efforts to provide credit relief or restructuring to corporations affected by the Covid-19 pandemic. If this falls short, however, the Corporate Secretary of Bank Mandiri, Rudi As Atturidha, said that the company has established sufficient reserves when credit quality declines. “We hope that with

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