The central bank's deputy governor said credit growth in 2011 was predicted to reach more than 24 percent in line with banks` business plans submitted to Bank Indonesia.Jakarta (ANTARA News) - Bank Indonesia (BI) predicts there will be a hike in banks` loan-to-deposit ratio in 2011 as credit had grown in excess of third party funds.
"The LDR will increase in 2011 because credit growth is high while third party funds will drop," the central bank`s deputy governor Muliaman D Hadad said here on Friday.
He said credit growth in 2011 was predicted to reach more than 24 percent in line with banks` business plans submitted to Bank Indonesia.
"According to projections, credit will increase to over 24 percent or higher than last year`s 23.6 percent. This is normal due to economic growth which is projected to reach 6.5 percent," he said.
The third party funds meanwhile are projected to grow only 15.1 percent because banks start to reduce collecting funds in view of the large stocks of funds they manage.
"Banks still have a large liquidity so they do not need more additional funds to increase credit distribution," he said.
Based upon the projections, he said, BI has made an analysis to see the capability of the banks to implement their business plans that would not endanger their liquidity.
"We must assure that banks could increase their credits to boost the economy without having to disrupt their security. Based upon BI stress tests all banks are in good condition," he said.
He said the conditions of the Indonesian economy this year would be better although it would still be disturbed by the world`s economy whose recovery is slow.
"Under such conditins we are optimistic the banking industry will grow better," he said.(*)
Editor: Heru Purwanto
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