The increase in third party funds allowed banks more room to finance credits.
Solo (ANTARA News) - All 66 commercial bank branches and 88 people`s credit banks (BPS) in Surakarta performed well in June ahead of Idul Fitri in Surakarta.

The performance was indicated by increases in total assets, credits and third party funds they held compared with the same period last year, Suryono, deputy chief representative of Bank Indonesia said here on Monday.

Banking assets were valued at Rp41.98 trillion by June or an increase of 25.37 percent in the same period.

The increase in assets was largely on growing third party funds that reached Rp32.80 trillion or an increase of 25.66 percent, Suryono said.

Savings contributed 51.5 percent to the third party funds with time deposits accounting for 32.36 percent and gyro fund for 16.14 percent.

The increase in third party funds allowed banks more room to finance credits, he said.

By June outstanding credits of bank in this district reached Rp33.96 trillion or an increase of 25.63 percent.

Around 38.6 percent of the credits were in the hands of small and medium enterprises, Suryono said.

He noted small enterprises including those not considered bankable are gaining easier access to bank credits through the People Business Credit program (KUR) of the government.

Outstanding KUR credit by June reached Rp993.37 billion or an increase of 61.15 percent with 99,757 recipients.

Banks have played well their intermediary role in this area, he said.

In June 2012, investment credits grew the highest by 60.12 percent to Rp4.05 trillion with working capital credit rising 24.14 percent to Rp20.41 trillion and consumer credits up 17.84 percent to Rp9.49 trillion.

He said the high growth of investment credits is expected to help expand production capacity and boost area economic growth.

The level of the banking intermediary role was reflected by Loan to Deposit Ratio (LDR) reaching 103.55 percent in June.

Meanwhile, banks also maintained good credit quality as reflected by gross non performing loan (NPL) ratio of only 2.68 percent .

Consumer credits were dominated by Housing Ownership Credits (KPR) , followed by motor vehicle credits respectively accounting for 36.33 percent and 3.27 percent of the total consumer credits.

The motor vehicle credits contributed only a small portion but in absolute term the credits surged 114.25 percent to Rp279.60 billion in June 2012 with KPR growing only 40.40 percent to Rp3.11 trillion .

The largest bank borrowers are wholesales and retail traders accounting for Rp10.02 trillion , followed by manufacturing sector accounting for Rp8.14 trillion and real estate and rental sector for Rp1.30 trillion. (Uu.AS/H-ASG/O001)

Editor: Priyambodo RH
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