Household loans have also showed a significant increase, pushed by mortgage loans.
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.
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