Ahead Of Ramadan, Bank Credit Distribution Indicates An Increase

JAKARTA – Bank Indonesia (BI) reported that new credit distribution by banks in February 2023 indicated an increase compared to the previous month.

Head of the BI Communication Department Erwin Haryono said this was reflected in the Net Weighted Balance (SBT) for the new 2023 loan distribution which was recorded as positive at 66.7 percent.

According to him, that's not reverse from the SBT in the previous month which was recorded at minus 7.2 percent.

Meanwhile, based on the type of use, there were indications of an increase in new credit disbursement for all types of credit.

"The main factors affecting the distribution of new loans include requests for financing from customers, prospects for future monetary and economic conditions, as well as the level of business competition from other banks," he said in a press statement today, Friday, March 17.

Erwin added, in line with the increase in new credit distribution by banks, demand for corporate financing in February 2023 also indicated positive growth with an EBT of 9.4 percent.

It was stated that the majority of financing came primarily from its own funds, followed by the use of concessional facilities for withdrawals and loans/debt from the parent company.

"In addition, there are indications that the need for corporate financing for new loans from domestic banks has also increased compared to the previous month," he said.

Furthermore, on the household side, the demand for new financing is indicated to be relatively stable in February 2023. The majority of households apply for a type of financing in the form of multi-purpose loans and choose commercial banks as the main source of additional financing.

"Other sources of financing that are preferred by households to meet their financing needs include cooperatives and leasing," concluded Erwin.