JAKARTA. The banks’ net interest margin (NIM) is likely to increase in this year, as the credit interest rate is expected to rise. During the same period, the savings rate is potentially to decrease. According to Bank Indonesia (the Central Bank), as of January 2017 the banking’s credit interest rate has increased by 1 bps, while the deposits interest rate dropped by 6 bps. Based on those facts, the Deposits Insurance Agency (LPS) projected that the NIM of banking industry in 2017 is potentially to increase. Head of Economic Risks and Financial System Group at LPS Dody Arifianto said that the banking NIM is still potentially to increase by 7 bps to 5.7% on year on year basis. “The NIM tends to be stable or slightly increase in 2017,” Dody told KONTAN, Monday (20/2).
Banks may expand the margin
JAKARTA. The banks’ net interest margin (NIM) is likely to increase in this year, as the credit interest rate is expected to rise. During the same period, the savings rate is potentially to decrease. According to Bank Indonesia (the Central Bank), as of January 2017 the banking’s credit interest rate has increased by 1 bps, while the deposits interest rate dropped by 6 bps. Based on those facts, the Deposits Insurance Agency (LPS) projected that the NIM of banking industry in 2017 is potentially to increase. Head of Economic Risks and Financial System Group at LPS Dody Arifianto said that the banking NIM is still potentially to increase by 7 bps to 5.7% on year on year basis. “The NIM tends to be stable or slightly increase in 2017,” Dody told KONTAN, Monday (20/2).