The Financial Services Authority (OJK) predicted on Thursday that bank lending would rise by up to 12 percent following solid loan growth in the first semester of this year
he Financial Services Authority (OJK) predicted on Thursday that bank lending would rise by up to 12 percent following solid loan growth in the first semester of this year.
Data from the OJK shows that bank loans totaled Rp 4,225 trillion (US$296.9 billion) in the first six months of this year, a 10.38 percent increase on the Rp 3,828 trillion recorded in the same period last year.
'Looking at the growth in the first semester, I think that by the end of this year, lending will have grown by between 11 and 12 percent,' OJK deputy commissioner for banking supervision Irwan Lubis said as quoted by kompas.com on Thursday.
Irwan said that regional elections and an increase in government spending were expected to contribute to loan growth in the second semester of this year.
In its report, the OJK also stated that banks' third-party funds jumped by 12.65 percent to Rp 4,319 trillion in the first semester of this year.
Meanwhile bank assets grew by 11.11 percent to Rp 5,933 trillion and non-performing loans grew by 2.55 percent. (ika)
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.