This growth was supported by positive growth in all types of credit and the majority of economic sectors.
"Banking intermediation continues to improve thanks to improvements from the demand and supply," Warjiyo said while announcing the results of the December 2022 meeting of the central bank’s board of governors (RDG), which was accessed online from here on Thursday.
In addition, intermediation recovery was also witnessed in Islamic banking, with financing growth recorded at 23.5 percent yoy.
In the MSME segment, MSME credit growth in November 2022 was recorded to be quite high at 18.13 percent yoy, he said.
On the supply side, improvement in banking intermediation was supported by adequate bank liquidity and loose credit/financing standards.
Meanwhile, on the demand side, the increase in credit/financing was supported by steady corporate demand and household consumption.
"Overall, this positive development of banking intermediation has contributed to economic recovery," he said.
According to Warjiyo, the resilience of the financial system, especially banking, was maintained both in terms of capital and liquidity.
Banking capital remained strong with the capital adequacy ratio (CAR) remaining high at 25.08 percent in October 2022.
Meanwhile, banking liquidity in November 2022 was maintained thanks to the growth of 8.80 percent yoy in third-party funds (DPK).
Along with strong capital, risk remained under control, as reflected in the ratio of non-performing loans (NPL) in October 2022, which was recorded at 2.72 percent (gross) and 0.78 percent (net).
BI simulation results showed that banking resilience was still maintained.
In the future, the central bank will continue to strengthen synergy with the Financial System Stability Committee (KSSK) to mitigate various domestic and global macroeconomic risks that could undermine financial system resilience.
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