JAKARTA (TheInsiderStories) - Banking Survey Bank Indonesia (BI) concluded that credit growth throughout 2016 is estimated at 9.2 percent on an annual basis compared to 2015 ( yoy), lower than the previous estimate of 10.6 percent (yoy).
Until the third quarter of 2016, BI is still seeing new loans disbursed by banks to grow slower, and will rise in the fourth quarter, said Executive Director of the Department of Communication BI Tirta Segara in press statement.
The slowdown in new loans occurred in consumer loans and working capital loans, with a decrease Weighted Net Balance (WNB) respectively from 36.1 percent to 9.4 percent and from 59.4 percent to 54.5 percent, said Tirta.
Tirta said the new loans in the third quarter was slow as lending rates were still high, and the increased financing risk, reflected in the increase in non-performing loans (NPL) which rose to 3.2 percent in August 2016 from 3.16 percent in previous month.
“In the consumer loans such as mortgages, vehicles, credit cards, multipurpose, and unsecured loans, almost all types of new loans slowed down,” he said.
Based on the BI survey, it was found that only credit card on-line consumption showed an increased, reflected in WNB which stood at 23.5 percent from 22.7 percent.
Overall, Tirta said the new loan disbursements however stood at 73.3 percent in the third quarter, an increase compared to the second quarter of 64.4 percent.
He continued, in the fourth quarter of 2016, new loans are projected to increase, as the economy recovers, while lending rates are expected to decline and liquidity is easing.
“The policy of bank lending in the fourth quarter of 2016 tend to be more lenient than the third quarter of 2016, which will push the pace of credit growth,” he said.
The quarterly banking survey of BI involves 41 commercial banks with a share of credit of up to 80 percent.
While the survey data is represented by WNB, which is calculated by multiplying the weight of respondents banking with the bank credit. (*)