JAKARTA. The sluggish economy has affected the performance of the minor banks or Commercial Banks Group of Business Activities (BUKU) I and II. According to the data from Financial Services (FSA), as of September 2016 the credit allocation of BUKU I dropped by 45.06% from Rp 118,00 trillion as of September 2015 to Rp 64.83 trillion on year on year (yoy) basis. BUKU II banks were luckier by recording the credit allocation of Rp 567.38 trillion as per the end of the third quarter. This has slightly increased by 2.71% on annual basis. The minor banks have a tighter liquidity. For an example, the loan to deposit (LDR) of BUKU II increased to the level of 92.49%. This has also driven the minor bankers to set conservative target by the end of the year.
Sluggish economy suppressed minor banks
JAKARTA. The sluggish economy has affected the performance of the minor banks or Commercial Banks Group of Business Activities (BUKU) I and II. According to the data from Financial Services (FSA), as of September 2016 the credit allocation of BUKU I dropped by 45.06% from Rp 118,00 trillion as of September 2015 to Rp 64.83 trillion on year on year (yoy) basis. BUKU II banks were luckier by recording the credit allocation of Rp 567.38 trillion as per the end of the third quarter. This has slightly increased by 2.71% on annual basis. The minor banks have a tighter liquidity. For an example, the loan to deposit (LDR) of BUKU II increased to the level of 92.49%. This has also driven the minor bankers to set conservative target by the end of the year.