Competing Banks Offer Competitive Loans, Corporate Financing Becomes Perturbative

JAKARTA Bank Indonesia (BI) revealed that the request for corporate financing in October 2022 indicated positive growth. This is reflected in the Weighted Net Balance (SBT) of corporate financing of 14.4 percent.

Director of the BI Communication Department Erwin Haryono said the financing needs were mainly met from his own funds, which were still the majority of sources.

"Then it is followed by the use of leniency facilities for withdrawals, loans or debts from the parent company, and the addition of new credit to domestic banks," he said during a press statement on Monday, November 21.

According to Erwin, banking's new lending in October 2022 also indicated positive growth as reflected in last month's new credit distribution SBT of 32.8 percent.

"The main factors that influence the estimated distribution of new loans are demand for financing from customers, prospects for monetary and economic conditions in the future, as well as levels of business competition from other banks," he stressed.

Erwin added, for the entire period of the fourth quarter of 2022, the offer of new credit disbursement is estimated to increase compared to the previous quarter. The value of the new credit disbursement SBT is assessed to be 92.2 percent, higher than 84.5 percent in the third quarter of 2022.

Furthermore, on the household side, the demand for new financing is also indicated to grow positively in October 2022.

The majority of households choose commercial banks as the main source of additional financing even though it decreased compared to the previous month. Then, the majority of types of financing proposed by households are in the form of multipurpose loans.

"As for other sources of financing that are the respondents' preferences to meet financing needs, including cooperatives and leasing," Erwin concluded.