Banking Industry Predicting Stronger New Loan Growth in Q4/2020 - Bank Sentral Republik Indonesia
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October 25, 2020

The latest Banking Survey conducted by Bank Indonesia pointed to faster growth of new loans disbursed by the banking industry in the third quarter of 2020, as confirmed by a significant improvement in the weighted net balance (WNB) of demand for new loans to 50.6% from -33.9% in the previous period, yet remaining behind the 68.3% recorded in the third quarter of 2019. Respondents expected growth of all loan types to pick up, led by working capital loans. Meanwhile, the banking industry predicted stronger growth in the fourth quarter of 2020, albeit below the level achieved in the same period one year earlier.

Respondents predicted lending policy in the fourth quarter of 2020 may not be as tight as the previous period, as indicated by a decline in the Lending Standard Index (LSI) to 8.1% from 11.0% in the previous period. The banks expected to ease lending standards on all loan types, particularly MSME loans.

The latest survey also signalled slower credit growth in 2020. Respondents predicted credit growth in 2020 at 2.5% (yoy), which is lower than credit realisation in 2019 at 6.1%. 

Head of Communication Department
Onny Widjanarko
Executive Director 


Information on Bank Indonesia
Tel. 021-131, email: bicara@bi.go.id



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