BI: New Credit Distribution and Corporate Financing to Increase in March 2024

Head of the BI Communication Department Erwin Haryono. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) said that new credit distribution by banks and corporate financing needs in March 2024 are indicated to increase.

New credit distribution by banks in March 2024 is indicated to increase with a Weighted Net Balance (WNB) of 80.9 percent, higher than the WNB in ​​February 2024 which was 54.1 percent.

"The main factors influencing the forecast for new credit distribution in March 2024 are requests for financing from customers, prospects for future monetary and economic conditions, as well as the level of business competition from other banks," said Head of BI Communications Department Erwin Haryono in Jakarta, quoted from Antara, Monday April 29.

Erwin said that overall in the first quarter of 2024, offers of new credit distribution from banks are predicted to continue to grow.

Meanwhile, the need for corporate financing in March 2024 is indicated to increase, which is reflected in the WNB for corporate financing of 25.3 percent, higher than the WBT of 11.1 percent in February 2024.

The increase in financing needs is driven by the needs of business fields (LU) in trade, processing industry and construction.

Sources of corporate financing mainly come from own funds, followed by the use of withdrawal allowance facilities and financing from domestic banks.

In the household group, 10.9 percent of respondents stated that there was a need for new financing in March 2024. The majority of household financing came from commercial banks with a share of 41.2 percent, an increase compared to the previous month which was 39.8 percent.

Apart from banking, the main sources of financing that are preferred by households include leasing and cooperatives.