Research

Banks: Flashing Downside Risks

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Algo Research Team

Industry | May 22, 2023 | Views: 122

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Key Summary:

  • Cyberattack is the new systemic downside risk
  • Loan growth is losing momentum & potentially higher credit cost
  • Most upside risks are priced-in

A few days before the Minister of SOE went to Qatar to discuss about BRIS (the biggest Syariah bank in Indonesia), there was a growing speculation of a cyberattack after their system went haywire. Now, we know that there was a breach of around 1.5TB customers data alongside internal documents, which have been published publicly by the assailant. Was this coincidence? or targeted? We do not know.


Last year, Bank of Indonesia's network was hit by a cyberattack as well. Altogether, this brings a new systemic downside risk for Indonesian banks. Note that BMRI, BBRI and BBNI all have stakes in BRIS, which begs the question whether as a SOE group they are all as susceptible to cyberattack?

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