New credit growth increases in 2020 third quarter: BI survey

New credit growth increases in 2020 third quarter: BI survey

BI (Bank Indonesia). (ANTARA News/Ferliansyah)

Jakarta (ANTARA) - The Bank Indonesia (BI) survey indicated increased new credit growth in the 2020-third quarter, with the weighted net balance (WNB) of new loan requests, at 50.6 percent, better than -3.9 percent in the earlier quarter.

However, in the third quarter of 2020, the WNB was lower than 68.3 percent recorded in the third quarter of 2019.

"Based on the type of use, the increase in new credit growth occurred in all credit types, with the largest rise in the types of working capital loans," Executive Director of the Communication Department of BI Onny Widjanarko noted in his latest information in Jakarta on Friday.

Widjanarko projected new credit growth to increase in the fourth quarter of 2020, albeit below the level recorded in the corresponding period in the previous year.

Tighter lending standards are forecast in the fourth quarter of 2020 as compared to the previous period, as was reflected in the Lending Standard Index (ILS) of 8.1 percent, lower than 11 percent in the previous quarter.

"There are indications of lending standards easing on all types of credit, especially loans to MSME debtors," he stated.

Widjanarko noted that the survey results indicated a slowdown in credit growth for the entire year.

Respondents have projected credit growth at 2.5 percent yoy in 2020, lower than the credit realization of 6.1 percent yoy in 2019. Related news: OJK slashes 2019 credit growth target to 9-11 percent
Related news: Bank Indonesia guarantees liquidity to achieve 12 percent credit growth