The policy had huge benefits including banking and people`s learning, while actually the impact was yet to be proven, but it would make the banks become more efficient.
Jakarta (ANTARA News) - A total of 44 Indonesian banks had announced their Basic Loan Interest rates applicable as of March 31, 2011, the Central Bank (BI) said.

Several banks like BRI, BCA, Bank Mandiri and BNI had announced their interest rates following BI`s decision.

According to BRI`s corporate secretary Muhammad Alim here Thursday, the policy had huge benefits including banking and people`s learning, while actually the impact was yet to be proven, but it would make the banks become more efficient.

BRI`s Basic Loan Interest rate reached 10.65 percent for corporate credits, 12.86 percent for retail credits, 11.49 percent for housing credits, in addition to 13.00 percent for non-housing credits.

Bank Mandiri had set its basic loan interest rate of 10.75 percent for corporate credits, 13.05 percent for retail credit, 12.72 percent for housing credits and 10.93 percent for non-housing credits.

Previously Bank of Indonesia as the central bank announced the Basic Loan Interest rates by its management to increase banking product characteristics and transparency, inform the costumers on costs and risks, enhancing good governance also to promote sound banking competition by practicing high discipline.

Lending rates for debtors is the Basic Loan Interest rates and risk premium, whereas the Basic Loan Interest rates consisted of three components namely the final sum from the cost of credits, overhead costs incurred in the process of bank lending and profit margins.

Mortgage interest rates imposed on debtors are not necessarily the same as Basic Loan Interest rates. The risk premium represents the assessment of banks on the prospects of loan repayment by potential debtors by considering the debtor`s financial condition, credit period, and the prospects of the business being financed.

In the initial step, banks with assets Rp10 trillion or more based on the monthly reports of commercial banks on February 28, 2011, must publish their Basic Loan Interest rates in the rupiah denomination.

The three types of credits must be published, namely corporate credits, retail and consumption (housing and non-housing) credits.(*)

Editor: Heru Purwanto
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