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Sri Mulyani praises banking industry’s resistance to crisis
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Finance Minister Sri Mulyani Indrawati (JP/Anton Hermansyah)
Finance Minister Sri Mulyani Indrawati has praised the banking industry’s ability to face critical situations.
Her statement was delivered at the Indonesia Banking Expo (IBEX) on Thursday, attended by stakeholders in the banking industry, including regulators.
“In the last 20 years, after the economic crisis in 1998, the banking industry has faced tough challenges,” said the minister as reported by kontan.co.id,during the event that highlighted “the banking industry in the fourth industrial transformation.
Sri Mulyani said the economic crisis in 2008 was the biggest challenge since the crisis in the 1998 because unlike previous crises, the 2008 crisis threatened the global economy, but the banking industry managed to survive.
The industry continued to face challenges from 2011 to 2014, when the price of several commodities such as oil, gas, coal and palm crude oil (CPO) dropped significantly, she said.
However, the banking industry survived the crisis, although non-performing loans worsened after the industry restructured bad loans, she added.
Sri Mulyani also warned that the banking industry was facing similar challenges amid global economic uncertainty sparked by the United States’ fiscal and economic policies as well as trade war between the US and China. (bbn)
