OJK encourages banks in NTT to expand branches

OJK encourages banks in NTT to expand branches

Head of the East Nusa Tenggara Provincial Financial Services Authority (OJK) Office Robert Sianipar (left) (Photo of Antara - Aloysius Lewokeda)

Kupang (ANTARA) - The Financial Services Authority of the Province of East Nusa Tenggara (NTT) encouraged banks in the area to expand their branch offices to regions in order to encourage economic growth in the community.

"The opening of a banking branch office can in fact grow the economic vigor of the community, one of which is an increase in lending as in Belu District," said Head of the NTT Provincial OJK Office, Robert Sinaipar, in Kupang on Saturday.

It noted that the amount of credit disbursement from banks in the local province has now reached around Rp29 trillion.

Belu District, he continued, was the region with the second highest credit distribution growth after Kupang City.

Robert said, after tracing the growth of credit that was quite good in Belu District due to the number of banks that were relatively more complete than other districts.

"This is interesting because it means the opening of a banking branch office will encourage growth, the fact is like that," he said.

For that, he continued, in the future it will continue to encourage banks to expand their branch office network to enter the regions , so that it can encourage economic growth.

Furthermore, Robert said, the condition of the ratio of non-performing loans (NPLs) in the area is currently recorded at 2 percent.

"This ratio is still low from the 5 percent threshold, and is still lower than the national NPL of 2.3 percent," he said.

He added, if sorted from the type of bank, the highest NPL came from the People's Credit Bank (BPR) of 3.55 percent, in addition to the Commercial or conventional Bank by 1 percent, and Islamic Bank NPL of 0.6 percent.