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View all search resultsPefindo sees signs of recovery despite rising bad loans
Private credit bureau PT Pefindo Biro Kredit reported that it saw a surge of more than 100,000 credit inquiries booked in June to over 378,700 inquiries, from a year-low figure of around 263,000 inquiries in May.
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rivate credit bureau PT Pefindo Biro Kredit has reported that it sees early signs of loan disbursement recovery due to rising credit inquiries, though it noted an increase in bad loans and high-risk debtors amid the ongoing pandemic.
A credit inquiry is a request by an institution for credit report information on a borrower following a credit application.
The bureau reported that it saw a surge of more than 100,000 credit inquiries booked in June to over 378,700 inquiries, from a year-low figure of around 263,000 inquiries in May, according to Pefindo Biro Kredit president director Yohanes Arts Abimanyu.
It was seen as a positive sign even though it was lower than the figure in the first three months of the year, which exceeded 1 million inquiries each month.
“After the large-scale social restrictions [PSBB] were relaxed, several financial institutions started to channel loans, but this was limited, as evident in the credit report inquiries curve going upward,” Yohanes said during a virtual media briefing on Tuesday.
The economic impact of the COVID-19 pandemic has depressed the public and businesses’ purchasing power, resulting in cooling loan demand and difficulties in repaying existing loans. The economy contracted 5.32 percent in the second quarter this year.
Pefindo Biro Kredit recorded a 0.58 percent month-to-month credit portfolio decrease among its 296 members in June to Rp 3.36 quadrillion, although the figure was still an increase of 3.06 percent from April to May.
