In­done­sia’s loan growth at 10.5 per­cent in 2015

The Pak Banker - - BUSINESS -

JAKARTA: Loans by In­done­sian banks ex­panded 10.5 per­cent in 2015 from a year ear­lier, con­sid­er­ably slower than the cen­tral bank's tar­get of 15-17 per­cent, Bank In­done­sia (BI) data showed on Thurs­day. But the De­cem­ber pace is faster than in Novem­ber, when loans ex­panded 9.8 per­cent from a year ear­lier. In 2015, the cen­tral bank re­vised down its out­look for loan growth twice as the econ­omy slowed more than it ex­pected and eas­ier lend­ing rules it in­tro­duced dur­ing the year failed to prop up growth. On Thurs­day, the cen­tral bank cut its bench­mark ref­er­ence rate by 25 to 7.25 per­cent in a bid to aid both loan and eco­nomic growth. Based on banks' work plans, loans are ex­pected to in­crease 14.1 per­cent this year.

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