bank loan, how high can you go?
Bank Indonesia is optimistic that bank loans could grow beyond 18% - 20% if banks use more than half the existing capacity in this year.
BI Deputy Governor Muliaman D. Hadad said that by using 50% capacity of the existing, bank loan growth could reach 18% - 20%, so that if more than that credit performance will be even greater.
"We have a room big enough for lending. If 50% is used alone, we can grow loans 18% to 20%. But if this capacity is more than half of the loans could be higher than the target, "he said in a dialogue Banking Industry in 2010, in Indonesian Banking Development Institute (LPPI) Jakarta, this afternoon (Jan, 25).
He explained that meant the capacity is the ability of liquidity and capital owned by the bank today is sufficient to conduct the business expansion. Bank's capital adequacy ratio as of November 2009 approximately 17%, while the ratio of loan to fund approximately 70%.
Muliaman convey the momentum of global economic recovery should be utilized domestic banks, although the economic recovery is not completely normal. "We hope to shift the orientation, ie to meet a better economy," he said.
However, he added, on the other side of the BI warns that credit expansion still consider the current economic conditions based on the business sector, because a large number of countries still have not made an exit policy from the crisis.
BI Deputy Governor Muliaman D. Hadad said that by using 50% capacity of the existing, bank loan growth could reach 18% - 20%, so that if more than that credit performance will be even greater.
"We have a room big enough for lending. If 50% is used alone, we can grow loans 18% to 20%. But if this capacity is more than half of the loans could be higher than the target, "he said in a dialogue Banking Industry in 2010, in Indonesian Banking Development Institute (LPPI) Jakarta, this afternoon (Jan, 25).
He explained that meant the capacity is the ability of liquidity and capital owned by the bank today is sufficient to conduct the business expansion. Bank's capital adequacy ratio as of November 2009 approximately 17%, while the ratio of loan to fund approximately 70%.
Muliaman convey the momentum of global economic recovery should be utilized domestic banks, although the economic recovery is not completely normal. "We hope to shift the orientation, ie to meet a better economy," he said.
However, he added, on the other side of the BI warns that credit expansion still consider the current economic conditions based on the business sector, because a large number of countries still have not made an exit policy from the crisis.
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