JAKARTA - Bank Indonesia Banking Survey indicates that new quarterly credit growth slowed in quarter III-2019 and is predicted to increase again in quarter IV-2019.
This development was reflected in the weighted net balance (SBT) of new credit demand in quarter III-2019 of 68.3%, lower than 78.3% in the previous quarter. Based on the type of usage, the slowdown mainly came from investment credit and consumption credit. Meanwhile, in the fourth quarter of 2019, new credit growth is forecasted to increase, driven by optimism on strengthening monetary and economic conditions and also the relatively subdued risk of lending.
In line with forecasts for increased growth in new credit, lending policies in quarter IV-2019 are predicted to be more relaxed, as indicated by the Lending Standard Index (ILS) of 11.8%, slightly lower than 12.0% in the previous quarter. Relaxed standards for lending will primarily be made to house / apartment ownership loans, investment loans, and MSME loans, with aspects of lending policies that will be relaxed including credit platform, interest rates, and collateral.
The survey results indicate a slowdown in credit growth throughout this year. Credit is forecasted to grow by 9.7% (yoy), or lower than the forecasts of the previous quarter and the realization of the previous year. (LM)