Global economic crisis is predicted to last for a long period and will widely affect every economical sectors including banking. Without quick reaction by conducting productive efforts, banks will get even worse impact. Head of Bali Branch of Bank Indonesia, Drs. Viraguna Bagoes Oka presented his insight on the opening ceremony of training for cashiers of commercial banks in Bali.

Therefore Viraguna strongly suggested banks to elaborate and implement innovative breakthroughs to accelerate productive sectors in addition to cost efficiency. The key to innovation is human resources. “Therefore human resource capacity in the banks has to be improved to cope with increasing need,” he said.

He refused opinion saying that insufficient implementation of banks’ intermediary function has been caused by suffering capacity of human resource within the banks themselves. “However with reliable human resource, the capacity of the banks to both improve themselves as well as support commercial capacity of their customers,” sand Viraguna.

So far Viraguna admitted that loan utilization in Bali is rather low. At the moment average loan to deposit ration (LDR) of commercial banks in Bali is 56 percent, lower than the national average of 60 percent. The figure means that only 56 percent of the fund collected by banks from the people – in form of saving, deposit, etc. – driven out as loan. Ideally LDR has to be by far higher to accelerate economic growth.

Viraguna who got his master degree in the US reminded that human resource development in banking industry is extremely essential, especially in supporting productive sectors which will in turn bring positive impact into economy as a whole. Human resource of the banks will help bankable entrepreneur in getting financial support to grow their business.

Viraguna envisioned that there are many non-tourism economic potential which can be improved to bring additional value to the people. Efforts on exploiting these business sectors are very important in getting better economic reliability, especially as Bali is currently very dependent to tourism industry.

With regard to economic forecast for 2009, Viraguna predicted that there will be no significant growth. In fact he predicted that the economy will be slowing down as an impact of the global financial crisis. Banking industry may also slowing down if other if there is no growth in productive economic sectors, especially considering Bali is very dependent to tourism and export.