Corporations Are Getting Hungrier On Credit Grabs, Bank Indonesia Brings Good News: Indications Of Bright Economic Prospects

JAKARTA - Bank Indonesia (BI) reports that the need for corporate financing/credit is indicated to increase in February 2022 compared to the previous month.

Head of the BI Communications Department Erwin Haryono said that the signal was reflected in the Weighted Net Balance (WNB) of 14.3 percent, which was higher than the January 2022 WNB of 13.1 percent.

“The increase in financing comes from own funds, which still make up the majority of financing and the utilization of the leeway facility for withdrawals and new loans to banks. Meanwhile, financing originating from loans or debt from the parent company is indicated to be slowing down," he said in a press statement, Friday, March 18.

According to Erwin, in February 2022, the distribution of new loans also indicated an increase compared to the previous month.

"The main factors influencing the estimated increase in new lending are demand for financing from customers, as well as prospects for better future monetary and economic conditions," he said.

Erwin continued, new credit disbursement in February indicated an increase in all categories of banks and all types of credit. Meanwhile, for the entire period of the first quarter of 2022, the supply of new loans is estimated to grow slower than the previous quarter.

"The need for new financing by households is relatively stable in February 2022. The majority of households choose commercial banks as the main source of additional financing with the type of financing proposed by the majority in the form of multi-purpose loans," concluded Erwin.