Sharia banking industry grows rapidly this year: central bank

Pekanbaru, Riau (ANTARA News) - The national sharia banking industry grew 36.7 percent in the year to September 2012 from a corresponding period a year earlier, according to the central bank.

Indonesia now has 11 sharia commercial banks with 24 sharia business units and 156 sharia financing banks, Executive Director of the Sharia Banking Department at Bank Indonesia Edy Setiadi said here on Wednesday.

The sharia banking industry also has low net non-performing financing (NPF) of 1.81 percent, he said.

The ratio of financing disbursement to third party fund placement in the national sharia banking industry is relatively high at 102.1 percent, he said.

He further said despite the financial crisis engulfing Europe and the United States since the middle of last year the macro economic condition in Indonesia is relatively good.

"With the economic growth projected at a range of 6.3 to 6.7 percent for this year, the inflation rate can hopefully be kept at a level of 4.5, plus 1, percent," he said.

Looking ahead, the sharia banking industry will continue to grow thanks to the expansion of sharia financing, along with the higher growth of the domestic economy despite the financial woes in Europe, he said. (S012)

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