espite volatility in the global financial market, Indonesian banks will likely see continued healthy growth in loan disbursement next year as they are less exposed to global pressure, an economist has suggested.
Private lender Bank Danamon chief economist Anton Hendranata said on Wednesday that local banks could see their loan disbursement increase by around 9 percent in 2017 as most of their third-party funds were circulated in the domestic market.
"However, it will be hard to reach double-digit growth next year as demand for capital loans will still be sluggish," Anton said.
The banking industry saw loan disbursement grow 6.4 percent year-on-year (yoy) in September, lower than that in August, which stood at 6.8 percent yoy.
Anton said the main constraint for credit growth next year would be nonperforming loans, which stood at 3.1 percent in September. (hwa)
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