Banking: Messages behind fall of NPL ratio




Jakarta   /  Tue, September 4, 2018  /  01:44 pm

The banking sector’s efforts to reduce the NPLs through write-offs must still be carried out.(Shutterstock/File)

In the first half semester of this year, Indonesia’s banking performance was marked by an improvement in the ratio of non-performing loans (NPLs). According to the monthly general banking report in June, the NPL ratio stood at 2.67 percent, slightly lower than the 2.96 percent in the first half of 2017. 

Even so, if we look at the components that comprise the NPL ratio...