Bank Indonesia: Bank Loans Will Grow 9.2%

Bank Indonesia

Bank Indonesia (BI) presented the results of its latest banking survey. According to BI, bank loans are expected to grow by 9.2 percent in 2022.

BI in its report, Tuesday (19/7/2022), wrote, “(Bank loans) higher than the 2021 credit growth of 5.2 percent on an annual basis [year-on-year/yoy].”

In line with that, the growth of third-party funds (DPK) until the end of 2022 is expected to be maintained. This development is reflected in the weighted net balance (SBT) of DPK collection in 2022 which is estimated at 45.3 percent.

However, the SBT value for collecting deposits is not as high as the SBT in the previous year (YoY) which reached 78.5 percent.

Meanwhile, new loan disbursement in the second quarter of 2022 was higher than the previous quarter, as reflected in the WNB new loan demand which reached 96.9 percent. This figure has increased compared to the previous quarter by 64.8 percent.

The increase in new lending was recorded in all types of credit, with the highest SBT recorded in working capital loans at 92 percent, followed by investment loans at 89.8 percent, and consumption loans at 74 percent.

By sector, the highest credit disbursement was recorded in the agriculture, hunting, and forestry sectors with a WNB of 75.1 percent.

Furthermore, according to the Head of the Communications Department of Bank Indonesia (BI) Erwin Haryono, the main factors influencing the forecast for new lending are demand for financing from customers, as well as prospects for future monetary and economic conditions.

Meanwhile, for the entire period of the second quarter of 2022, the supply of new loans is estimated to grow at a higher rate than in the previous quarter. From the household side, new financing requests are indicated to grow positively in June 2022.

“The majority of households choose commercial banks as the main source of additional financing with the type of financing proposed by the majority in the form of Multi-Use Loans. Other sources of financing that are respondents’ preferences to meet financing needs include cooperatives, leasing, and fintech,” he concluded.