Banking Industry Anticipating Slower New Loan Growth in 2020 - Bank Sentral Republik Indonesia
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August 11, 2020

The latest Banking Survey conducted by Bank Indonesia pointed to declining new loan growth in the second quarter of 2020, with the weighted net balance (WNB) of demand for new loans deteriorating significantly to -33.9% compared with 23.7% in the previous period and 78.3% in the second quarter of 2019. Respondents confirmed the declining growth of all loan types, investment loans in particular. Meanwhile, the survey respondents expected new loan growth to rebound in the third quarter of 2019, even though not as high as the same period in the previous year.

Respondents predicted looser lending policy in the third quarter of 2020, as indicated by a marked decline in the Lending Standard Index (LSI) to 3.9% from 34.4% in the previous period. The banks expected to ease lending standards on all loan types through credit lines, collateral requirements and loan maturity.

The latest survey also indicated slower credit growth in 2020. Respondents predicted credit growth in 2020 at 2.5% (yoy), lower than credit realisation in 2019 at 6.1% as well as the 5.5% prediction in the previous survey.

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

Head of Communication Department
Onny Widjanarko
Executive Director
Information about Bank Indonesia
Tel: 021-131, Email:




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