You are here

Indonesia financial regulator revises down 2016 loan growth outlook

Monday, October 24, 2016 - 15:59

15_40257246 - 20_10_2016 - INDONESIA-ECONOMY_RATES.jpg
Indonesia's Financial Services Authority (OJK) has revised down the outlook of commercial banks' loan growth for 2016 to 6-8 per cent, from 7-9 per cent, its chairman said on Monday.

[JAKARTA] Indonesia's Financial Services Authority (OJK) has revised down the outlook of commercial banks' loan growth for 2016 to 6-8 per cent, from 7-9 per cent, its chairman said on Monday.

Bank loans in Indonesia in August grew 6.83 per cent from a year earlier, data showed, the slowest since November 2009 and very low compared with historical trends.

Bad loans have been rising, prompting banks to increase provisions which have squeezed profits. "Banks' capacity to absorb risks of losses is strong, it's reflected in banks' capital adequacy ratio which reached 23 per cent (in August)," Muliaman Hadad told a joint news conference with the central bank and the finance ministry.

REUTERS

 

sentifi.com

Market voices on:

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom