Top 4 Indonesian banks' liquidity supported by their 'safe haven' status

They have higher CASA ratios.

According to Moody's, the top four banks are primarily funded by domestic deposits with loan-to-deposit ratios well below 100%.

Here's more from Moody's:

Notably, the liquidity profiles of the top four - especially Bank Mandiri - have tightened in recent years as banks channeled a greater part of their liquid assets into loans and financing. Notwithstanding, their current liquidity positions remain strong based on their key metrics.

The top-four banks’ liquidity is supported by their “safe haven” status among local customers. Compared to their smaller domestic peers, the top four have higher current account and savings account (CASA) ratios, larger holdings in liquid assets, and lower loan-to-deposit ratios.

The big four’s favorable funding structures support their credit profiles in an environment of rising interest rates and/or tighter liquidity.

While the top four have strong deposit franchises, Bank Central Asia stands out with the most favorable funding profile, and has the highest proportion of low-cost funds. At end-June 2013, CASA accounted for 81% of total deposits.

Bank Central Asia is the only large bank in Indonesia that can fund its entire loan book with CASA deposits. Bank Central Asia’s status as the largest bank for the payment and settlement of bills in Indonesia results in a stable customer deposit base that is not significantly affected by variations in interest rates.

This advantage is likely to continue, supported by the bank’s large investments to maintain its position as Indonesia’s largest  transaction bank.

Low foreign currency loan-to-deposit ratio. The top four Indonesian banks have kept their loandeposit ratios low in recent quarters. The top four are in an advantageous position with foreign currency deposits exceeding foreign currency loans.

This situation reduces our concerns about excessive un-hedged borrowings, which could become problematic, given a depreciating IDR.