"Demand for banking credits will remain strong until the end of the week. This is indicated in the year-to-date credit growth which reached Rp123 trillion, or 7 percent. It reached Rp358 trillion or 23.5 percent year on year basis," he said here on Wednesday.
He said that the credit growth was still dominated by investment credits which were recorded at 10 percent year-to-date, followed by consumption credits which accounted for 7.5 percent.
Muliaman said that even though there were banks which still performed below the banking business target (RBB), yet demand for credits were predicted to remain strong until the end of the year.
Last year, the realization of banking credits recorded a growth of 22.8 percent while credits which were recorded to be below the the RBB (banking business target) accounted for 22-24 percent.
Haddad said last month that credits provided by the banking sector up to April 2011 increased to Rp350.8 trillion or about 23.8 percent while third party funds rose to Rp364.9 trillion or about 18 percent, Bank Indonesia (BI) said.
He told a hearing of the House of Representatives (DPR)`s Commission XI on financial affairs that performance, banks` loan-to-deposit ratio (LDR) increased from 75.15 percent in December 2010 to 77.98 percent in April 2011.
Apart from that the quality of banking credits was also relatively under control with gross and net non-performing loan ratios respectively recorded at 2.8 percent and 0.5 percent. It was relatively stable compared with those in the previous month.
This also improved the operational cost-to-income ratio from 80 percent in December 2010 to 77.8 percent in March 2011.
(Uu.A014/HAJM)
Editor: Priyambodo RH
Copyright © ANTARA 2011
