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Jakarta Post

Major banks will unlikely to raise rates

  • Esther Samboh

    The Jakarta Post

Jakarta   /   Mon, February 7 2011   /  10:36 am

Major banks will likely maintain their interest rates, at least within the medium-term, despite the central bank’s decision to raise the benchmark interest rate by a quarter percentage point last week.

Several lenders among the nation’s top 10 banks, including Bank Central Asia (BCA), Bank Mandiri, CIMB Niaga and Bank Tabungan Negara (BTN), said the 25 basis points (bps) hike should not affect their lending rates in the near-term as sources for capital remained strong due to adequate third-party funds.

According to Bank Indonesia (BI) data, as of November 2010 the four banks account for nearly 30 percent of the country’s overall credit.

“Despite a hike in the BI rate ... we will not raise our lending rates just yet,” Bank Mandiri chief financial officer Pahala Mansury told The Jakarta Post on Sunday. Mandiri is the nation’s second largest bank by lending...