increased banking intermediation function
Insurers conduct assessment of risks insured banks that will be given to the insurance. Thus, the bank will get a second opinion from insurers as the credit guarantee agency prior to a credit line granted to the debtor.
The possibility of development of refinancing cooperation
Banks can develop cooperation in particular for the export credit refinancing or imports that are pre-shipment or post-shipment with competitive interest rates with foreign banks or banks or financial institutions abroad so that the lending rate of the national banks can be more competitive.
Client referrals
Insurers can provide referrals for clients who have a good track record to be able to make use of bank facilities.
increased banking intermediation function
Banks more competitive, courageous and passionate in channeling credit to real sector includes businesses engaged in the activities of non-oil exports. With the credit protection and the incentive (non-subsidized, in the form of collateral for credit risk at a low cost, the calculation of risk weighted assets and the reduction of risks of premium, non bankable transactions that can be a bankable). Thus the banking intermediary function, especially for financing the real sector will be increased which will be reflected from the LDR.
While the benefits to be gained real sectors / borrowers through credit insurance, among others:
The real sector liquidity will be helped by the insurers that become the bridge between the real sector and banking.
Competitiveness real sector will be assisted through:
• Liquidity and adequate credit facilities with a better interest rate, due to bank financing backed by the insurance.
• Ability real sector, especially export-oriented in the penetration into non-traditional markets are generally higher risks, can be supported by the protection of insurers.
The real sector including the export business can improve its business by more competitive and more secure.
Reduce unemployment by creating jobs