New Loan Growth Predicted to Accelerate in Fourth Quarter of 2019 - Bank Sentral Republik Indonesia
Navigate Up
Sign In
July 05, 2020

The latest Banking Survey conducted by Bank Indonesia revealed how new loan growth decelerated in the third quarter of 2019, with respondents nevertheless expecting growth to regain upward momentum in the fourth quarter of 2019. Such developments were confirmed by a decline in the weighted net balance (WNB) of demand for new loans to 68.3% from 78.3% in the previous quarter, primarily weighed down by investment loans and consumer loans. Meanwhile, the survey respondents expected new loan growth to rebound in the fourth quarter of 2019, backed by growing optimism in monetary and economic conditions and supported by relatively low lending risk.

Congruent with faster growth of new loans disbursed by the banking industry, respondents also predicted looser lending policy in the fourth quarter of 2019, as indicated by a decrease in the Lending Standards Index to 11.8% from 12.0% in the previous period. The banks were expected to loosen lending standards on housing loans, investment loans and MSME loans through credit ceilings, lending rates and collateral requirements.

The results of the latest Survey also indicate a slowdown in credit growth for the whole year. Respondents predicted credit growth in 2019 at 9.7% (yoy), retreating on that forecasted in the previous Survey and that realised in the previous year.

Comprehensive survey results are posted under the Banking Survey on the official Bank Indonesia website.



Is this article give you useful information?
Rate this article:
Show Left Panel