JAKARTA. Public listed lender Bank Central Asia (BCA) is choosing to maintain its high level interest margin and ignore an incentive offered by the Financial Service Authority (OJK) to banks that are willing to cut their margins. According to an OJK statement circulated in April, lenders whose net interest margin (NIM) is less than 4.5 percent because they are providing lower cost of funds for clients will be provided with a certain easing when opening new branches. “We probably would not take the incentive. We will retain our NIM higher than 6 percent, as it is a comfortable level for our business,” BCA president director Jahja Setiaatmadja said during a press conference in Jakarta on Wednesday.
BCA chooses high margin over OJK incentive
JAKARTA. Public listed lender Bank Central Asia (BCA) is choosing to maintain its high level interest margin and ignore an incentive offered by the Financial Service Authority (OJK) to banks that are willing to cut their margins. According to an OJK statement circulated in April, lenders whose net interest margin (NIM) is less than 4.5 percent because they are providing lower cost of funds for clients will be provided with a certain easing when opening new branches. “We probably would not take the incentive. We will retain our NIM higher than 6 percent, as it is a comfortable level for our business,” BCA president director Jahja Setiaatmadja said during a press conference in Jakarta on Wednesday.