Banks Correct Credit Targets over Decelerating Economy
31 July 2015 15:32 WIB
TEMPO.CO, Jakarta - A number of banks corrected their loan growth target this year due to the national economic slowdown in the first half of this year.
PT Bank Negara Indonesia Tbk, for example, revised its credit growth target to 12-14 percent. The state bank initially targeted for a 15-17 percent growth.
Meanwhile, PT Bank Mandiri Tbk had cut its loan growth target from approximately 19 percent to 13-15 percent. Another state-owned bank PT Bank Rakyat Indonesia Tbk also lowered its credit growth target from 15-17 percent to 11 percent.
Raden Pardede, deputy chairman of the National Commercial Banks Association (Perbanas), estimated that credit growth rate will only reach 12-14 percent at the end of this year. The moderate projection, he said, is based on the fact that almost all economy-driving sectors are experiencing a slowing growth.
Muliaman Hadad, board of commissioners' chairman of the Financial Services Authority (OJK), said the economic slowdown is affecting the performances of financial industries, banks in particular.
The impact is apparent in domestic banks' reports, where 108 out of 118 banks operating cut its loan growth target for this year.
Mr. Hadad said that this year' bank credit growth target had been corrected by 2.67 percent from 16-17 percent to 13-15 percent.
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