BI estimates credit growth to reach 4%-6% by December 2021
JAKARTA – The credit growth is projected to arrive at 4% to 6% by the end of this year. However, Bank Indonesia (BI) is still on the lookout for the aftermath of monetary policy change in the United States, especially the tapering policy of the Fed, the US central bank.
Muhamad Nur, the Group Head of Communication Department of BI, explained that the optimism regarding this credit growth would be influenced by monetary and economic conditions, including the stability of credit channeling risk. “The intermediations of banks are starting to recover as the corporation and household financial situations improve. Throughout the first half of 2021, the credit slowly improves, finally reaching 0.59% year-on-year (yoy) by the end of it,” he continued in the official release earlier today (5/10).
Aside from the credit growth, BI also predicted similar growth in the third-party funds of banks of 6% to 9% by the year-end. However, once again, it still needs to consider the effect of the pandemic on the economic condition.
“Bank Indonesia would keep making innovations in the digital aspects, economic and financial inclusion, and green economy. The synergy of the combination of BI and other financial authorities’ policies would still be enhanced to maintain the stability of macroeconomy and monetary system as well as the economic recovery,” Nur concluded. (LK/ZH)