JAKARTA - To anticipate predicted demand for loans next year, banks are beginning to look for other alternative sources of funding beyond third party funds (DPK), through wholesale funding.
PT Bank Pembangunan Daerah Jawa Tengah (Central Java Bank) is one of the banks that will use wholesale funding through the issuance of medium term notes (MTN) worth Rp 1 trillion. This MTN will be used for credit expansion.
Director of Business Bank Jateng Pujiono said MTN of Rp 1 trillion consists of two types. "As much as Rp 500 billion is a conventional MTN, the rest is sharia," he said as quoted by Kontan, Wednesday (13/12).
According to him, fundraising through wholesale funding is in line with business conditions next year. Bank Jateng targets 15% credit growth next year.
Its supporters are micro, small and medium enterprise (MSME) loans and syndicated loans for corporations. Until November 2017, the credit realization of Bank Jateng has reached Rp 1.6 trillion.
Wholesale funding option is also ogled by PT Bank Negara Indonesia (Persero) Tbk (BBNI). According to Vice President Director of BNI Herry Sidharta, BNI still has a sustainable bond worth Rp 7 trillion in the next year. "The bond is still valid until 2019, if necessary we will execute," Herry said. BNI will also issue global bonds, negotiable certificates of deposit (NCD) and subordinated bonds or sub-debt.
Finance and Treasury Director of PT Bank Tabungan Negara (Persero) Tbk (BBTN), Iman Nugroho Soeko said that the company will issue several funding instruments outside the DPK next year. Among the securitization of assets, NCD and bilateral loans.
For the record, marketable securities issued by banks reached Rp 108 trillion, an increase of 33% on an annual basis per quarter III 2017.
In general, banks have disbursed loans amounting to Rp 4,588.5 trillion as of October 2017. This amount grew 8.0% compared to Rp 4,246.9 trillion in October 2016. This loan consisted of consumption credit of Rp 1,338.5 trillion, capital credit work worth Rp 2,122.1 trillion and investment credit of Rp 1,127.9 trillion.
Meanwhile, the collection of deposits amounted to Rp 5,019.3 trillion per October 2017. This fund grew 10.64% compared to Rp 4,536.3 trillion per October 2016.
Banks are preparing other ammunition to fund higher credit demand in 2018. Not only rely on third party funds, banks will seek other sources of funding through wholesale funding.
The banking regulator projected credit growth in the next year will be better than this year. The Financial Services Authority (OJK) predicts credit will grow 13% next year. Meanwhile, Bank Indonesia (BI) estimates the loan to reach 10% -12% in 2018. (AM/HR)