Third party funds held by banks also grew stronger 7.6 percent (yoy) than a growth of 6.6 percent in September in the same year, Deputy Commissioner of OJK`s Strategic Management and Logistic Anto Prabowo said after a meeting of the OJK Commissioner Council here earlier this week.
Anto said based on the conclusion taken at the meeting, the country`s financial sector was quite stable.
Emerging markets including Indonesia enjoyed the positive impact of the US political and economic dynamics especially the result of the mid term elections which strengthened the position of Democrat Party in the Congress, giving greater control by the party over the US Government policy, he said.
The US economic development, which began to be less encouraging, also had prevented the yield of the US Government bonds and the dollar from rising.
By Nov 23, the composite share price index (IHSG) of the Indonesian Stock Exchange recorded a growth of three percent since Nov.1 this year.
"The IHSG strengthening was driven by the sectors of finance, basic industry and property. Non-resident investors recorded a net buy of Rp9.5 trillion," Anto said.
In the market of state securities (SBN), the yields of short, mid and long terms bonds respectively dropped 34 basis points (bps), 52 bps, and 49 bps mtd. Foreign net buy was Rp30.3 trillion.
In the stock market, funds raised by corporations reached Rp156 trillion by 23 November 2018. There were 56 new listed companies so far this year, up from 45 companies newly listed in the same period in 2017.
Fresh funds raised by listed companies were dominated by those in the financial sector accounting for 56.91 percent.
Anto said the quality of assets of financial service was fairly good as indicated by the level of Non Performing Loan ratio of 2.65 percent recorded by the banking industry and non performing financing ratio of 3.21 percent by financing companies.
Bank capital adequacy ratio by October, 2018 was stable at 23.09 percent and "Risk-Based Capital" of general insurance companies and life insurance companies were 308 percent and 418 percent respectively.
Reporting by Indra Arief Pribadi
Editing by Rahmad Nasution