TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Maintaining lending growth amid rising uncertainty
Household loans have also showed a significant increase, pushed by mortgage loans.
Change Size
The country’s bank loans rose 11.34 percent to Rp 4.975 quadrillion (US$336.15 billion) as of July amid an increase in mortgage and mining loans. (Shutterstock/File)
T
he country’s bank loans rose 11.34 percent to Rp 4.975 quadrillion (US$336.15 billion) as of July amid an increase in mortgage and mining loans. With the increase, which is the highest since 2015, domestic banks are on track to achieving their loan growth target of 12 percent this year.
In line with strong household spending in the second quarter ( Q2 ), household loans have also showed a significant increase, pushed by mortgage loans. Meanwhile, loans to the mining industry started to improve with the commodity price recovery and listed mining companies’ positive performance.
Besides the favorable external factors, the positive lending performance was also supported by the improvement in the banks’ internal conditions.
First, domestic banks’ capital adequacy ratio (CAR) was strong enough to support lending growth.
