JAKARTA – Many are anticipating changes that are looming if the Federal Reserve actions towards hiking interest rates. Wan Razly Abdullah, Strategy and Finance Director of PT Bank CIMB Niaga Tbk (BNGA), speaks about the affects if higher rates are enforced by the Federal Reserve.
“We are hoping that the Fed will increase the interest rate so market will know that there is a big difference in rates between the Fed’s and BI’s rate. It will bring back investments to Asia or especially to Indonesia,” he said at the bank’s public expose in Jakarta (12/8/2015).
He commented that currently Bank Indonesia’s rate and the Federal Reserve’s interest rate remain distant. But even so, his company need to improvise just in case.
“We have try to manage our nonperforming loans (NPL) asset, doing business with Small Medium Enterprises (SMEs), and consumer banking as the way to move forward,” he added. (LK/CH)