JAKARTA. Minor banks have started reducing their deposit interest rate, following the major banks step to cut the deposit interest rate. Previously, the major banks decided to take the measure after BI (the Central Bank) declined its benchmark interest rate. In addition to the reduction of BI’s rate, the major banks cut the deposit interest rate after LPS or Deposit Insurance Corporation cut the insurance interest rate. President Director of Bank Dinar Indonesia Hendra Lie said that the bank still has sufficient liquidity due to low demand on credit. Therefore, Bank Dinar has to decrease the savings interest rate. “We are reviewing to decrease the interest rate by 25 bps”, said Hendra. To date, Bank Dinar offers a 7.5% deposit interest rate, much higher than 5% BI seven days repo rate, as well as 6.25% LPS rate and the average 6.65% deposit interest rate of banks in general.
Minor banks cut deposit interest rate
JAKARTA. Minor banks have started reducing their deposit interest rate, following the major banks step to cut the deposit interest rate. Previously, the major banks decided to take the measure after BI (the Central Bank) declined its benchmark interest rate. In addition to the reduction of BI’s rate, the major banks cut the deposit interest rate after LPS or Deposit Insurance Corporation cut the insurance interest rate. President Director of Bank Dinar Indonesia Hendra Lie said that the bank still has sufficient liquidity due to low demand on credit. Therefore, Bank Dinar has to decrease the savings interest rate. “We are reviewing to decrease the interest rate by 25 bps”, said Hendra. To date, Bank Dinar offers a 7.5% deposit interest rate, much higher than 5% BI seven days repo rate, as well as 6.25% LPS rate and the average 6.65% deposit interest rate of banks in general.