Good News from BI: Banking Credit Distribution Has Increased

JAKARTA – Bank Indonesia (BI) reports that new credit distribution by banks in August 2023 is indicated to increase compared to the previous month.

Head of the BI Communications Department Erwin Haryono said this was reflected in the Weighted Net Balance (WBT) of new credit distribution in August 2023 which was recorded at 86.2 percent or grew higher than the previous month's WBT of 45.1 percent.

"The main factors influencing new credit distribution include requests for financing from customers, prospects for future monetary and economic conditions, and the level of business competition from other banks," he said in a press release today, Tuesday, September 19.

Meanwhile, for the entire third quarter of 2023, offers of new credit distribution from banks are expected to increase.

Erwin further explained that on the household side, demand for new financing was indicated to be relatively stable in August 2023. Meanwhile, the fulfillment of financing originating from commercial banks increased compared to the previous month.

"Apart from banking, other sources of financing that are preferred by households to meet their financing needs include cooperatives and leasing," he said.

Erwin also said that corporate financing in August 2023 indicated positive growth, although lower than the previous month.

This is reflected in the WBT for corporate financing of 14.7 percent. This figure is lower than WBT 17.6 percent in July 2023.

"The source of corporate financing mainly comes from own funds, followed by financing originating from domestic banks which was recorded to have increased compared to the previous month," he concluded.