Credit expansion reaches 8.71 percent until May 2017: OJK

Jakarta (ANTARA News) – Indonesias banking credits grew 8.71 percent in May 2017, adult 0.37 percent from 8.34 percent in a same month final year, according to a Financial Service Authority (OJK).

However, a May 2017 credit enlargement fell 0.76 percent from 9.47 percent a month earlier.

Although a banking credits in May 2017 grew during a slower gait than in Apr 2017, OJK believes a credit enlargement until May 2017 was still applicable to a business skeleton of banks that have set a aim of credit enlargement for 2017 during 9-12 percent.

“Compared to final year, it (the credit growth) is better,” Chief of OJKs Board of Commissioners Muliaman Hadad pronounced during a Indonesia Stock Exchange (BEI) Building here on Tuesday.

The May 2017 credit enlargement was fueled by abounding third celebration account chain that grew by 11.18 percent year-on-year, he said.

The volume of credits that were extended to a electricity zone grew 31.05 percent, a construction zone 24 percent, a fisheries zone 11.2 percent and a rural zone 10.8 percent.

Muliaman remarkable that a enlargement of 4 state-owned banks businesses contributed significantly to a credit growth.

The volume of credits extended by a 4 state banks, Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI) and Bank Tabungan Negara (BTN), until May 2017 reached 14.81 percent, with third celebration account chain flourishing 16.77 percent.

However, a banking credit enlargement did not widespread uniformly as a volume of credits channeled by private banks grew 4-5 percent.

The ratio of non-performing loans remained during 3.07 percent until May 2017.(*)

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