The forecast continues the improvement of bank intermediation, which grew 5.24 percent late last yearJakarta (ANTARA) - The Deposit Insurance Institute (LPS) has forecast that bank credit will grow within a range of 5.1–8.9 percent this year.
"The forecast continues the improvement of bank intermediation, which has grown 5.24 percent late last year, "LPS chief commissioner, Purbaya Yudhi Sadewa, said at a press conference on Friday.
Sadewa said he is optimistic that credit growth will continue to improve though it may not skyrocket to 15–20 percent because of global uncertainty.
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The Omicron variant of COVID-19 will still have an impact so bank credit is unlikely to show two-digit growth, he added.
Further, the intermediary function of banks should continuously be encouraged by issuing a measurable banking stimulus policy and taking the financial system stability into account, he said.
He also projected third-party fund placement will grow 8.5–9.4 percent this year.
"This is still rather late since a part of the public's money will be placed (in the bank) to drive the economy," he said.
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He said the banking industry's fundamentals are still relatively strong with the capital adequacy ratio (CAR) at 25.67 percent and liquid instrument ratio (AL/NCD) at 157.94 percent.
The interbank money market has also shown a stable trend, reflecting sufficient interbank liquidity, with the interbank money market rate, IndONIA, moving at 2.78 percent and one-month and three-month JIBOR at 3.55 percent and 3.75 percent, respectively, he informed.
For the same period, the average LIBOR USD overnight has been stable at 0.07 percent, while the one-month LIBOR has risen slightly by one basis point (bps) to 0.1 percent, and the three-month LIBOR has increased by five basis points to 0.24 percent, he added.
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Translator: Agatha Olivia V, Suharto
Editor: Fardah Assegaf
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