TEMPO.CO, Jakarta - Bank Indonesia released yesterday poll results showing banking industry’s optimism that loan distribution can grow up to 13.1 percent (year-on-year) in 2017, having struggled in consolidation era last year and a mere 9 percent growth is expected.
The poll mentioned three factors that can improve loan distribution: relaxed liquidity requirements, continued interest rate reduction and better economic activities.
Loan distribution will increase due to relaxed lending policies through low interest rates and reduced loan loss provision.
“The other factor is better economic condition and real sector that will need financing,” the poll said. BI poll was conducted among 41 commercial banks that make up 80 percent of the loan market.
As for third party funding (DPK), some banking industry players foresee improved loan growth in the first quarter of 2017 because deposit rates are still deemed attractive despite being lower compared to 2016.
PT Bank OCBC NISP Tbk, Commercial Banks Group of Business Activities (BUKU) III with a capital ranging from Rp5-Rp30 trillion, said that 2017 loan growth can reach 2 digits. OCBS projects loan growth rates between 9 and 12 percent, having seen only six percent loan realization in 2016.
“The Micro, Small and Medium-sized Enterprises are expected to support this year’s growth,” the OCBC NISP president director Parwati Surjudaja said.
PT Bank Rakyat Indonesia Tbk, BUKU IV with core capital of over Rp30 trillion, predicts 15 percent loan growth. The target is similar to that of 2016 at 13-15 percent.
Foreign Branch Banks (KCBA) share the optimism. German-based Deutsche Bank AG expects loan growth of 10 percent this year despite only managing 5 percent growth last year.
Citi Indonesia, a local unit of US-based Citibank, is also aiming loan growth between 9 and 12 percent.
ANTARA
