Bank Mandiri Reveals Financing And Credit Start To Slope After The Ramadan Period

JAKARTA - PT Bank Mandiri Tbk. reported that the need for financing and credit in the May 2021 period experienced a slowdown. According to the business entity with the ticker issuer BMRI, the banking intermediation function has been somewhat restrained in line with the passing of the momentum of Ramadan and Eid this year.

This is evidenced by the indications of increasing corporate financing needs in May 2021, although not as high as the previous month.

"The Weighted Net Balance (WBT) for corporate financing needs remains positive, at 16.1 percent, lower than the WNB 24.8 percent in April 2021", explained Bank Mandiri management in an official statement, quoted on Tuesday, June 22.

Similar conditions also occurred in financing by households in May 2021, which was still low.

"The percentage of household respondents who stated that they had added debt in May 2021 fell to 8.8 percent, from 9.1 percent in April 2021", said BMRI.

Meanwhile, the distribution of new loans in May 2021 is estimated to slow down compared to March 2021.

"The Weighted Net Balance (WBT) for new lending in May 2021 was 45.1 percent, a positive increase but slightly lower than the previous month's WNB of 48.0 percent", said Bank Mandiri.

Meanwhile, overall, banking intermediation is improving slowly although it has not been able to escape the pressures of the pandemic.

"In May 2021, bank credit continued to experience contraction, this time by 1.3 percent year-on-year (yoy), sloping when compared to credit contraction in March and April 2021, which were 3.8 yoy respectively and 2.3 percent yoy”.

"Banking NPL until April 2020 was stable at 3.2 percent. The resilience of the financial system as a whole is maintained, with the banking capital adequacy ratio (CAR) remaining high at 24.2", concluded Bank Mandiri.