JAKARTA. Loan growth in the banking industry has continued to decelerate this year, standing at 15.7 percent year-on-year by the end of July, the latest banking statistics has revealed.

According to the statistics, which were jointly published by the Financial Services Authority (OJK) and Bank Indonesia (BI), the growth rate declined from the 17.2 percent posted in June.

The statistics show that the amount of loans channeled by the banking industry reached Rp 3.49 quadrillion (US$293.62 billion) in July.

In terms of third-party funds (DPK), the banking industry saw the total figure rise 11.6 percent on a yearly basis to Rp 3.77 quadrillion. Similar to loans, the DPK growth rate also dropped, falling from the 13.6 percent posted in June.

Triggered by slower business, the commercial banks ended up posting 4.2 percent in net interest margin (NIM) in July, down from 4.22 percent in June. With such a NIM, the banks’ net profits reached Rp 65.96 trillion, 11 percent higher from a year before.

Meanwhile, the loans-to-deposit ratio (LDR), a main indicator of liquidity, climbed to 92.19 percent in July from 90.25 percent in June. At present, the LDR benchmark is set at 92 percent.

Editor: Barratut Taqiyyah Rafie