Banking Industries to See Stiff Competition, says Economist
1 February 2015 01:08 WIB
TEMPO.CO, Jakarta - The banking industries is predicted to see a stiff competition in raising the third-party funds (DPK) this year. Bank International Indonesia’s chief economist Juniman told Tempo on Friday, January 30, 2015 that banks would increase their deposit interest rate to attract customers.
According to Juniman, such a situation was caused by the economic slowdown in the country and a concern over depleting liquidity in the financial market.
“Unfortunately, [the DPK] would be effective for a short term,” Juniman said.
Therefore, Juniman hopes that banks would be more creative in increasing their liquidity, by expanding their business through a better risk management or employing a new business model with a sophisticated information technology.
“In addition, there must be new programs to attract customers to increase their deposit balance,” he added.
The Financial Service Authority recorded that the third-party funds raised by general banks reached Rp4,055 trillion (US$337.9 billion) per November 2014, increasing from Rp3,664 trillion (US$305.3 billion) in the previous year.
Earlier, Bank Indonesia predicted that the third-party fund raise would increase from 96 percent to 98.7 percent this year. BI said that 42 general banks, surveyed by BI, were optimistic that the third-party funds in all kinds of deposits would increase this year.
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