New bank loans jump 11.6% in September<\/p>\n
Dow Jones, Jakarta<\/p>\n
The Indonesian central bank said Friday that falling domestic
\ninterest rates continued to spur new bank loans in September.<\/p>\n
New bank loans jumped 11.6 percent to Rp 10.6 trillion
\n(US$1.15 billion) in September from Rp 9.5 trillion in August.
\nOutstanding bank loans rose to Rp 387.7 trillion from Rp 377
\ntrillion a month earlier, as a result.<\/p>\n
Most of the new loans were provided to small businesses, the
\ncentral bank said.<\/p>\n
New bank loans had virtually came to a halt following the
\n1997-1998 Asian financial crisis, which crippled domestic banks.
\nAlso, soaring interest rates and rising nonperforming corporate
\ndebts in the wake of the crisis effectively put a lid on new bank
\nlending.<\/p>\n
Bank Indonesia has cut the benchmark average rate of its one-
\nmonth Sertifikat Bank Indonesia notes to the current 13.10
\npercent from around 17 percent at the beginning of 2002, with
\ninflationary pressures easing and the rupiah gaining ground
\nagainst the dollar.<\/p>\n
Consequently, banks have reduced their lending rates to
\nbetween 17 percent and 19 percent currently from over 22 percent
\nearlier this year.<\/p>\n
Bankers said most of the new loans have been consumer loans,
\nas expected, with private spending resilient over the last three
\nyears. What's lacking is fresh lending for new capital
\ninvestments. Higher capital spending is needed to help the
\ncountry's economy achieve a growth rate of 5 percent, which
\nIndonesia needs to create enough jobs to alleviate the country's
\nsevere unemployment problem, they said.<\/p>\n
In September, Bank Indonesia said, outstanding time deposits
\nand savings rose to Rp 815 trillion from Rp 811.2 trillion in
\nAugust.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-bank-loans-jump-116-in-september-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}