Future Challenges

To realize that more banking firm, improvements must be made in various areas, especially to answer the challenges faced by banks in recent years. The challenges are as follows:

1. Capacity growth of bank credit that is still low
To achieve economic growth high enough within five years down the road, needed a bank loan growth that is large enough. Meanwhile, the ability of the banking capital india at this time indicates that credit growth high enough to achieve the difficult, if not improve the national banking capital conditions.
In addition to the barriers in terms of capital a bank, credit in many cases also hampered by the reluctance of some banks to offer loans to the bank to distribute credit risk management capabilities as core banking skills and the relatively better yet, and the operational cost is relatively high.

2. Banking structure that is not optimal
Currently optimizing the structure of banking in Indonesia marked by the banking structure is concentrated on 11 major banks, which control 75% of Indonesia's banking assets. although such small banks in this regard need to get attention because in addition to the amount that is relatively more, the banks also have a small business coverage is relatively the same with the banks but with operational capability, risk management, GCG and the relatively more limited . Similarly, Compared with other countries, the Indonesian government ownership in banks is seen quite high, even the highest in Asia. This is also the issue of segregated structure of the banking system because it can cause conflicts of interest that will disrupt the efficiency of the market.

3. Fulfilling the needs of the community to banking services that the community is still considered by the less
Lack of fulfilling the needs of the community banking waitress marked with a complaint often heard from people about rest access to credit and high interest rate credit t still many practices and the provision of informal financial services.

4. Supervision of banks that still need to be improved
Supervision of banks is also a field that needs improvement and perfection. This is because there are some principles that prudential still not implemented well management supervision is still need to be improved, the ability of the human resources that have not been optimal, and law-enforcement supervision condition, which has not been effective. Overall, efforts to increase the capability of the business is in line with Bank Indonesia to implement the 25 Basel core principles for effective banking Supervision, including improving infrastructure monitoring technology. Given the supervision of the bank sector is very dynamic and broad scope, the increasing of supervision quality is an effort that should be carried out continuously by the bank's server or by other institutions such as financial services authority (OJK) at a later time.

5. Banking capability, which is still weak
Weak capability, marked by a lack of corporate governance and core banking skills in most of the banks so that the necessary repairs on two fundamental enough it. Although the capability some big banks have been strong enough, but the capability of banking in general still below international best practices. Similarly, the bank's ability to respond to the increased operational risks still need to continue to be improved, especially the emphasis on the importance of internal controls and adherence to the principles prudential.

6. operational efficiency and profitability of the banks that are not sustainable
The level of profitability and efficiency operational achieved by banking in general is not the profitability and efficiency of the sustainable. This is caused by the weak structure of productive assets banks. Margin of banks because of the reduced interest rate trend is decreasing. The other factor is not sustainable from its efficiency and profitability is partly because the income derived from banking activities trading that fluctuate and low ratio of assets that the operational costs of banking india relatively high compared with other countries